Buyside traders fear that pending regulation and the ongoing debt crisis will increase costs, complexity and illiquidity in the fixed-income markets, making it difficult for traders to find suitable investments in 2012.

The Financial News Buyside Trading Snapshot, a qualitative poll of some of Europe's largest asset managers, found that although regulatory pressures and deepening illiquidity are cited as the two biggest issues dominating fund managers' fixed-income decision-making and trading strategies, new marketmaker and broker entrants are uncovering some, albeit limited, sources of liquidity for their fund manager clients.