Financial information services company Markit is planning to offer new liquidity metrics for fixed-income securities. The move is a response to increasing demand for liquidity information from institutions and regulators in the wake of the financial crisis.
The metrics will be introduced in April for credit-default swaps and evaluated bonds, with loans and European asset-backed securities to follow at a later date. The liquidity indicators will include bid/ask spreads and market depth information, as well as liquidity scores calculated by Markit.
The firm expects the metrics to be of use to both buy-side and sell-side institutions for risk