Question: Answer the below questions. (a) Why has there been a decline in corporate bond liquidity? (b) Why is e-trading of corporate bonds that rely less

Answer the below questions.
(a) Why has there been a decline in corporate bond liquidity?
(b) Why is e-trading of corporate bonds that rely less on dealer inventory important?

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a There has been a decline in corporate bond liquidity because traditional liquidity providers such as dealers and banks have pulled back due to risk aversion and the increase in regulations since the ... View full answer

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