‘Liquidity Vanishes’ Is The New ‘Too Much Liquidity’

Just two months ago, the chief concern for European credit investors was "bubbles" (i.e., "too much liquidity") and it wasn't difficult to discern why. After all, CSPP  has created all manner of distortions across € credit which, until recently anyway, was priced for perfection. The ECB's corporate bond buying binge has helped € credit spreads remain tight amid various manifestations of the upsurge in populist sentiment across the pond, but the program is rife with moral hazard.