Re:Mortgages are a manufactured product
by SilasX on Friday January 14, 2022 @05:38PM
(#29941474)
That’s not what lower liquidity looks like. The bonds sell just fine, you just have to lower the price to sell it, such that the effective yield matches the market rate.
Lower liquidity would show up as wider bid/ask spreads, which doesn’t happen in that case.
Lower liquidity would show up as wider bid/ask spreads, which doesn’t happen in that case.