The following is a statement from the study cited in the previous question: “Continuous, indicative pricing from corporate-bond market makers in every outstanding issue is an unrealistic expectation.” Explain why.

Data from Previous Question

In a 2016 interview of more than 400 U.S. and European bond investors in credit products such as corporate bonds, Greenwich Associates found that more than 80% felt that “reduced market liquidity is impacting their ability to implement their investment strategy” (McPartland, “Corporate Bond Liquidity Solutions Emerging”; see footnote 17). Explain why reduced market liquidity would have this adverse impact.