November’s publication summarizes two recent articles. The first explores the historical underperformance of highly liquid stocks as compared to their illiquid counterparts. The second notes the shrinking spreads on corporate debt and considers the market’s current position in the credit cycle.
- “Liquidity as an Investment Style,” Robert G. Ibbotson, Zhiwu Chen, Daniel Y.-J. Kim, and Wendy Y. Hu, Financial Analysts Journal, vol 69, no. 3 (May/June 2013)
- “Where Do We Stand in the Credit Cycle?” Dominic Wilson et al., Goldman Sachs, November 6, 2013