What's the most important lesson from the Lehman collapse?

Stephen Snowden Fixed income manager, Kames   Liquidity, or lack thereof. In the aftermath of Lehman, the corporate bond market was completely fractured. With the credit market lower than at any point in its 100 year history, many a rock-bottom price could be found. Managing liquidity is vital. A balance has to be struck between having ample liquidity while at the same time exploiting the bargains. This is much easier said than done. While prices are falling, sellers are willing to accept low-ball prices. Buyers in market panics have to be prepared to accept that they are buy...