Mauldin: The Next Crisis Will Reveal How Little Liquidity There Is
Authored by John Mauldin via MauldinEconomics.com,
This is something I’ve been pondering for some time. I think the next crisis will reveal how little liquidity there is in the credit markets, especially in the high-yield, lower-rated space.
Dodd–Frank has greatly limited the ability of banks to provide market-making opportunities and credit markets, a function that has been in their wheelhouse for well over a century.