标题: Bond new issues impacting secondary markets [打印本页] 作者: joemoran 时间: 2013-4-22 08:06 标题: Bond new issues impacting secondary markets
I just read (but can’t figure out the reason) that when there are more new issues in the corporate bond primary market, the liquidity of the secondary market improves and bond prices and returns increase? Anyone has any ideas as to why this could be happening?
Thanks!作者: genuinecfa 时间: 2013-4-22 08:07
New issuances in the primary market serve as a confirmation for prices on the secondary market and hence people are willing to trade more given they have a better sense of the relative value of their investments.作者: Iginla2011 时间: 2013-4-22 08:07
When credit markets are well bid (spreads are tight) then companies have an incentive to issue paper because its cheap vs when the credit markets are out of fashion and its more expensive…..the primary markets usually open in windows, especially in the high yield markets…..not sure why the CFA puts it the other way around…作者: MonkeyBusiness 时间: 2013-4-22 08:08
On-the-run securities have better liquidity and lower spreads
