The Periodic Treasury Exchange: A Proposal to Increase the Depth and Liquidity of the U.S. Treasury Market
针对银行退出做市导致固定收益市场流动性下降的问题，本文提出定期将非活跃国债与活跃国债交换的机制，帮助市场参与者更好对冲，从而在不扰乱市场的情况下进行更大规模交易。
In recent years, the liquidity of many fixed income markets has declined as banks have stepped away from their traditional role as market makers, but the balance sheets of many electronic market makers are not large enough to support significant positions, particularly in off-the-run securities. In this article, the authors propose a mechanism by which off-the-run Treasury securities can be exchanged periodically with the Department of the Treasury for on-the-run Treasury securities, allowing market participants to better hedge their books, and therefore to transact in significantly larger sizes without fear of disrupting the market or experiencing significant losses from a widening of the basis between near-offsetting long and short positions. <b>TOPIC:</b>Fixed income and structured finance