Wednesday, May 25, 2016

RB: market liquidity has decreased – RISK SURVEY (NY) – Dagens Industri

RB: market liquidity has decreased – RISK SURVEY (new)

                  2016-05-25 10:40
             

(Supplement: From paragraph four)

STOCKHOLM (AFX) Nearly half of the participants believe that the Swedish financial markets are worse than six months ago , it is mainly due to market liquidity has decreased. Many actors are also concerned about the Swedish households’ growing indebtedness.

According to the Riksbank’s survey of participants in the Swedish fixed income and foreign exchange markets.

However, fewer participants than in the previous survey that believes in the continued deterioration in the next six months.

liquidity deteriorated due, according to the responses in the survey mainly because market makers have become less willing to take risks than before, and at various financial regulations that have made securities trading more expensive.

the answers in the survey also shows a concern for the risks that are associated with low interest rates, leading investors to seek out ever more risky investments.

“the risks in turn lead to risk not priced full out and that price bubbles build up in several asset classes. This also applies to housing prices, which means that players are concerned about high household indebtedness, “the Riksbank.





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