Author: Martina Groll, Senior Fund Manager The bond purchase programme of the European Central Bank has caused a drought on the bond markets. As a result, investors now have to take into account the liquidity risk on top of the interest rate risk and the default risk.
![Bond markets suffering from decline in liquidity Bond markets suffering from decline in liquidity](https://blog.en.erste-am.com/wp-content/uploads/2016/04/Fotolia_54246899_L-370x210.jpg)