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COVID-19 and bond market liquidity: alert, isolation and recovery

The COVID-19 pandemic kickstarted a series of unprecedented events. The measures necessary to contain the spread of the virus disrupted entire industries. Anticipating the impact on their jobs and incomes, Canadian households and businesses started to change how much they borrowed and how they invested their savings. The widespread desire to hold more liquid assets and more cash threw many markets off balance. The repercussions spread like a contagion throughout the financial system. […]