Liquidity. It's Actually A Big Deal

by: Columbia Threadneedle Investments

By Colin J. Lundgren

Sometimes being able to sell is as important as being able to buy. To minimize disruption, fund managers need to have a solid program in place to ensure that they have enough liquidity.

Liquidity is the ability and the cost to trade within a portfolio. The last few years have seen robust inflows into bonds, leading some to be unconcerned about liquidity. However, Colin Lundgren disagrees with that stance. He feels that it is crucial for fund managers to be prepared to meet redemptions while also seamlessly fulfilling ongoing obligations to their remaining shareholders. Hear Colin discuss how important it is to pay attention to liquidity.

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