Explanation:
C is correct. Both pensions and endowments have increased their holdings of alternative assets from about 5% to 20-25%. A is incorrect. Municipal bonds have less than 10% turnover, much lower than approximately 35% for OTC equities. B is incorrect. US real estate markets are large compared to size of US stocks/bonds. D is incorrect. Liquidity dried up in both markets.
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Due to lack of available investment opportunities in public markets, a pension fund decided to hire an investment consultant to assess the potential for investing in illiquid markets in the US. Which of the following characteristics of illiquid markets in the US should the consultant present to the pension managers?
A
Municipal bonds are usually more liquid than pinksheet over-the-counter equities
B
The traditional public, liquid markets of stocks and bonds are larger than the tot ealth held in liquid asset
C
The share of liquid assets in institutional portfolios has generally gone up in the past 2 decades.
D
During the 2008-2009 Financial Crisis, liquidity dried up in repo markets but not in commercial paper markets.