June 26, 2013
One of the questions we frequently get from our clients is whether we could help them measure and quantify levels of liquidity in the corporate bond market. In order to make better informed trading decisions they want to understand, for example, how liquid the market is today compared to during the credit crisis.
We wanted to create an objective, quantifiable benchmark against which we could measure liquidity over time and across credit instruments, to help inform our clients' market research and analysis.
The MarketAxess Bid-Ask Spread Index (BASI)™ is the result of this work.