Liquidity lessons from the rates market in 2022
While rising rates can be very positive for macro investors, the speed of rate rises in 2022 has created serious liquidity challenges. Not only has dealer risk appetite been tested, in markets like UK gilts there have been a perfect storm of conditions – including leverage and decades of low central bank rates- which have punished government bond holders.
We review rates investment and trading in 2022 with James Athey, investment director at Abrdn, who analyses the gilt crisis in late September, sell-side liquidity provision and the best approach to portfolio optimisation for macro portfolio managers this year.
16.12.2022