Trading in financial markets is becoming more of a headache

David Brancaccio May 8, 2018
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Traders at the Chicago Board Options Exchange. Joshua Lott/Getty Images

Trading in financial markets is becoming more of a headache

David Brancaccio May 8, 2018
Traders at the Chicago Board Options Exchange. Joshua Lott/Getty Images
HTML EMBED:
COPY

Imagine you have a beautiful ballgown you’re trying to sell, but Congress has outlawed consignment shops, where you’d normally take it.

There, a middle person would be willing to hold onto it until a buyer came around. But without that middle person, the market for used clothing is less liquid. 

“That’s what’s happening I think writ large in the bond market,” said Jeffrey Cleveland, chief economist at Payden & Rygel in Los Angeles. Cleveland stopped by to talk with us about why trading in financial markets is becoming more difficult. 

Click the above audio player to hear the full interview.

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