AB: In Credit, Low Liquidity Can Spell Opportunity

If you ask bond investors what worries them most today, expect a one-word answer: “liquidity.” But if handled properly, low liquidity can also be an opportunity—as long as you’re selective about the risks you take. We certainly aren’t trying to minimize investors’ concerns. As we’ve pointed out before, managing liquidity risk is critically important.

 

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In Credit, Low Liquidity Can Spell Opportunity