New Realities for Fixed Income
Low Liquidity Is Likely to Persist
Liquidity Matters
Institutional investors are facing more deliberate decisions about their liquidity requirements. Market conditions today spotlight the need to identify and manage liquidity risk like any other investment risk.
Wellington Management’s proprietary Liquidity Evaluation Framework (LiEF), is a tool designed to help clients understand and manage their liquidity risk, answering questions such as:
- Is my portfolio more liquid than an alternative portfolio?
- How long will it take for me to liquidate or fund my entire portfolio?
- Which assets will be difficult to sell?
- How has the liquidity of my portfolio changed over time?