The illusion of liquidity
September 24, 2014 01:00:00 AM
Pension fund executives, like many investors, historically have been willing to pay a premium for liquidity. Lately, though, they've started to realize that, for many investments, liquidity can be an illusion. When the 2008 financial crisis hit, only the very highest-quality assets — such as U.S. Treasuries — proved as liquid as advertised.