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The Barclays Liquidity Gap Infographic - "This Could Lead To Potentially Severe Losses"

We have been covering the collapse in bond market liquidity since 2013. Some, and we envision mostly those residing at the Marriner Eccles building, still don't get it. So for their benefit, here is the problem with "liquidity gap" as explained in a one Barclays infographic.

From the bank: "The decline of fixed income liquidity in 2015 can be seen as a gap between supply and demand. Banks are supplying less liquidity, yet investors are still demanding more of it. The result? Potentially severe losses in fixed income."

This, in pictures:


Barclays' implied message? Bonds are risky, but stocks are safe, so please "rotate greatly" finally, and sell your bonds using the proceeds to buy risk free stocks. After all, the 0.1% - aka Barclays' clients - has about $20 trillion in stocks and they are quite desperate to liquidate them now that a global recession ist just around the corner.