Liquidity Is Improving In Stressed Markets, Goldman Says – But Don’t Let Down Your Guard

Liquidity, or a lack thereof, was a hot topic in August, just as it's been during every other turbulent month since February 2018's VIX ETN "extinction event". Modern market structure has made things more fragile during times of stress even if, on a day-to-day basis (i.e., during “normal” times) the upside in terms of efficiencies, etc. far outweighs the downside. As we're fond of putting it, 2018 might very fairly be described as the year when it dawned on a wider swath of market particip