Why Liquidity Is a Simple Idea But Hard to Nail Down

Bloomberg | Sep 15, 2020 at 6:00 PM

In the financial world, liquidity is cited constantly but rarely explained. It’s a term used in different ways depending whether the subject is economics, markets or banks. Regardless of which context, an old market adage often rings true: Liquidity is a coward that disappears at the first sign of trouble.