'Get used to it': central banks advise on liquidity risk

Central banks and prudential regulators are striking an increasingly concerned note about growing bond portfolios and shrinking dealer inventories – and are warning buy-side firms they will need to adjust. Here, five central bankers from four continents give their views

Guy Debelle, assistant governor for financial markets at the Reserve Bank of Australia (RBA), has some advice for asset managers on the altered nature of post-crisis liquidity: "If you bought into an asset class thinking you can turn around and sell it whenever you want, then you are mistaken."

This is part of a growing chorus of warnings from central banks and regulators – an attempt to focus asset managers on the liquidity risks implied by growing bond portfolios and shrinking dealer