As explained above, the global economic turmoil is expected to continue in 2023 as reflected by an economic slowdown and potential risk of economic recession in several countries, persistently high inflation due to energy and food prices, high monetary policy interest rates and US Treasury yields, strong US dollar, and uncertainty in global financial markets.
We’re hearing a lot of commentary about how liquidity may be diminishing in secondary bond markets, especially for corporate bonds. We see that the average size of a transaction has dropped and turnover rates are down from pre-crisis levels. Bid-ask spreads remain wider than they were in 2006. 9  6  The service is run by the Canadian Derivatives Clearing Corporation.