For example, here's an excerpt from my post on February 23, 2013:
Most bond investors these days are not necessarily buying fixed income investments with the intention of holding their bonds until maturity.
Instead, bonds since 2007 have been viewed as low-yielding shelter against the global worries about economic growth and political discord.
However, implicit in most bond investors thinking is the idea that, "hey, if things start looking better, I might sell some or all of my bond holdings and move back into stocks".
But what if "the Great Rotation" from bonds to stocks occurs in a short period of time? Who will buy the bonds that investors might want to sell?
http://randomglenings.blogspot.com/search/label/Bonds
Electronic trading has often been mentioned as a possible way to increase secondary bond market activity.
Regular reader Rich Sipley brought this article from the Financial Times to my attention today.
Titled "Electronic Trading is Not a Silver Bullet", the piece notes that while buying and selling bonds like stocks via computerized trading has intuitive appeal, there remains a number of barriers that may make it more difficult.
Here's an excerpt:
Working against the greater adoption of electronic trading is the fragmented and less liquid nature of coporate bonds, where each security has its own unique number, known as a Cusip. Unlike equities, where an individual stock is common to all investors, each bond issued by a company is distinct, with different coupons and prices. The lack of a generic bond works against a liquid market developing in this sector.
http://www.ft.com/intl/cms/s/0/24479efc-745a-11e2-80a7-00144feabdc0.html#axzz2Ma2yjo3L
Still, I am encouraged to see that the bond community is looking ahead to try to avoid what could be a serious problem at some point in the future.
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