As the price of equities and debt plummeted, reports of illiquidity in key financial markets emerged.1 In the United States, the Federal Reserve responded with a variety of interventions aimed at different markets within the financial sector. In this note, we attempt to shed some light on recent trading conditions in one such market: the market for US corporate bonds.

  1. In fact, reports of trading difficulties even reached the market for Treasuries, in what one journalist described as a “stunning lack of liquidity in what’s often billed as the world’s deepest and most liquid bond market.” Chappatta (2020)