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But in times of stress, like 2008, these markets can dry up.
Yet an enduring lesson of the crisis is that wholesale money markets can dry up from one day to the next.
Events brought into sharper focus the possibility that liquidity in many markets can dry up simultaneously when fear spurs risk aversion, and an intense, near-term focus on protecting capital values markedly elevates the demand for liquidity.
Still, those yields are now likely to stay at elevated levels.One reason is that global investors have been reminded how quickly emerging bond markets can dry up in a crisis.
Since then, he has been pointing out dangers ignored or underestimated in the finance industry, such as the risk that liquid markets can dry up far faster than is typically assumed.
Similar(55)
"I am presently happy and satisfied, but I know that I have to be very careful because the market can dry up," she says.
Because of the vagaries of our housing market, demand can dry up for six months, and so any factory producing modular units would lose all momentum," he said.
These can be hard to pin down, especially in fear-stricken markets where liquidity can dry up quickly.
This is fairly reliable but, as Bear Stearns showed, in a market meltdown it can dry up without central-bank support.
Interest rates can soar and the market for expensive condos can dry up before the building reopens in 2019.
Among them was a dependence by banks on wholesale funding from money markets, which experience has shown can dry up quickly in a crisis.
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