Extending a liquidity lifeline to investors in corporate credit

Investors should turn to the CDS market, as Bloomberg data shows the lack of liquidity in the corporate bond market

The corporate bond market has fallen foul of a paradoxical regulatory response to the global financial crisis of 2008. Central banks, charged with keeping the global economy from depression, have pursued a programme of unprecedented monetary accommodation, which has fuelled a 73% growth in non-financial corporate bonds outstanding in the