Corporate Bonds and Corporate Debt

corporate debt: We ve chronicled extensively here a few of the key reasons why liquidity has dried up in the bond waters. Namely, the fact that regulatory changes and shifts in risk appetite have pushed major dealers of corporate debt mostly banks out of the those activities. The end result has been a market thats not as flush with buyers and sellers, since the banks, who have traditionally served as highly-paid middlemen, are sidelined, according to Market Watch. Problems arise if investors begin pulling massive amounts of money out of bond funds, forcing funds to unload assets at fire-sale prices in the event the market is suddenly roiled and Ben Eisen Reporter NEW MarketWatch A sharp selloff in corporate bonds this week laid bare a key challenge: Its difficult to trade the credit markets when everyone wants to sell. Still, for many investors its hard to avoid the lure of fallen bonds offering rich yields. Of course, its a game fraught with risk. Big bond buyers such as Pimco, the worlds largest bond fund manager, have been scouring the credit markets in a hunt for yield. (news.financializer.com). As reported in the news.