This year marks 10 years since the start of the global financial crisis, which brings to mind the quote:
"Those who cannot remember the past are condemned to repeat it." — George Santayana
Fifteen years ago, when I joined the Macquarie Fixed Income team, one of my first tasks was to work with Dean Stewart, head of research, on a piece called "Importance of Liquidity in Fixed Income."
I didn't know it then, but that research would come to influence and shape our investment beliefs, philosophy and processes. It would also become a differentiating bedrock of how we would approach markets and portfolio positioning in some of the most extreme conditions financial markets had ever seen and remain relevant throughout the years.
The "Importance of Liquidity" was well received by clients and consultants but didn't gain a following (or get "likes" or "retweets" as it might today), being five years before anyone would appreciate (or be reminded) of the true importance of liquidity.
Conducting research is something that we at Macquarie Fixed Income have always firmly believed in. We come from a mindset that before we do anything, we must truly understand the risks involved with the markets and instruments we are trading in. While this sounds sensible and obvious, we are constantly surprised that this isn't as normal as it sounds.