Tag Archives: illiquid markets

Junk Bonds: No Free Lunch!

Summary: At two of the Wall Street firms I traded at there actually were free lunches! But at some point in time when the markets turned the free lunches would always come to an end! This concept of no free lunches holds true whether one is investing in real estate, junk bonds, stocks or commodities! Flashback […]

Bond Market Illiquidity: There’s A Very Small Door!

Imagine a concert venue with general admission seating, a famous band, and one small door to get inside. The result would likely be catastrophic! Is a similar scenario brewing only this time in the financial markets, bonds in particular? For the fund managers and other institutional investors who hold trillions of dollars of fixed income […]