28 Jul Judging liquidity like ‘trying to hug clouds’
Investment Magazine – Speaking at the Conexus Financial Fixed Income, Cash and Currency Forum, Voya Investment Management’s Matt Toms said there is concern regarding the volume of debt. “US debt markets are outpacing US real GDP, there is too much debt to move through the pipes,” he said. “But we believe that markets have priced in this lack of liquidity. Most market participants have a plan, so this is not an incrementally more difficult environment.”
Toms said the market is bifurcated between smaller managers and larger managers. Larger managers can get access to primary issuance, but to sell liquidity becomes distorted to the smaller managers.