A proliferation of new electronic trading initiatives will only go so far in restoring order to the fixed-income markets as they do not "create liquidity," according to Morgan Stanley's top banks analyst in London.

The comments from Huw van Steenis, who co-authored this week's Morgan Stanley/Oliver Wyman report on the wholesale and investment banking industry, echo responses to a recent Bank of England-led review into the fixed-income markets, which are currently showing a liquidity strain.