Due to the limited availability of viable investment opportunities in the public markets, a pension fund has decided to hire an investment consultant to explore potential investments in illiquid markets within the United States. What characteristics of the liquid markets in the US should the consultant communicate to the pension fund managers?

Exam-Like

Municipal bonds are usually more liquid than pinksheet over-the-counter equities.

23.1%

The traditional public, liquid markets of stocks and bonds are larger than the total wealth held in liquid assets.

19.2%

The share of liquid assets in institutional portfolios has generally gone up in the past 2 decades.

42.3%

During the 2008-2009 Financial Crisis, liquidity dried up in repo markets but not in commercial paper markets.

15.4%

Financial Risk Manager Part 2