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Post-crisis rules may sap bond-market liquidity: Federal Reserve

It adds, however, evidence doesn't suggest any strong impairment in liquidity in major fin markets

Craig Torres & Christopher Condon | Bloomberg 

The Federal Reserve acknowledged that post-crisis financial regulations may be crimping bond-dealers’ incentives to make markets, while also saying that the impact on liquidity appears to be limited. “A series of changes, including regulatory reforms, since the global financial crisis have likely altered financial institutions’ incentives to provide liquidity,” the Federal Reserve Board said in its semi-annual Monetary Policy Report to Congress. “However, the available evidence does not point to any substantial impairment in liquidity in major ...

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