ECB paper on the European corporate bond market

The ECB Occasional Paper "Implications for liquidity from innovation and transparency in the European corporate bond market" offers a new framework for the assessment of financial market liquidity and identifies two types: search liquidity and systemic liquidity.

Search liquidity, i.e. liquidity in "normal" times, is driven by search costs required for a trader to find a willing buyer for an asset he/she is trying to sell or vice versa. Search liquidity is asset specific. Systemic liquidity, i.e

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