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Bond sell-off highlights liquidity shortage

Post-financial-crisis regulation has made it more expensive to trade, research suggests

Bond sell-off highlights liquidity shortage
Photo: iStockPhoto

The global bond selloff has revived concerns about the ease of trading in bond markets, pushing investors to re-examine their strategies.

Post-financial-crisis regulation forced banks to retreat from their traditional role as market makers. That has sapped some bond markets of liquidity, research and many investors suggest, making it more expensive to trade and helping to spur the sort of steep price moves hitting bond markets since Donald Trump's election victory.

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