Insights for professional investors

Research

Mellon Investments Corporation

Navigating fixed income liquidity amid market volatility

4. December 2024

Liquidity in US fixed income markets is crucial to the functioning of the economy and maintaining financial system stability.

Navigating fixed income liquidity amid market volatility

Liquidity in US fixed income markets has experienced significant volatility since 2019 due to events such as the Covid-19 pandemic, the Federal Reserve’s tightening cycle, geopolitical conflicts, and the 2023 regional banking crisis. According to Mellon Investments Corporation (MIC), these fluctuations present new opportunities within fixed income markets.

The investment manager specialized in index management, developed a proprietary liquidity metric, the Liquidity Score, analyzing over 500,000 quotes to gain deeper insights into liquidity trends and their implications for US fixed income markets.

Read the full whitepaper here.