finding a buyer for one of thousands of corporate bonds all offering different terms, risks and maturities.
When investors wanted to flee the fallout from China Evergrande Group, those in Europe’s 500-billion euro ($584 billion) high-yield bond market found some of the normal escape routes blocked.
As trading stagnated in the market for the region’s riskiest bonds, investors were reminded of the problem of buying illiquid securities from an array of sometimes small unlisted companies.
It was the same story in 2018 when a string of credit blow-ups sent investors flocking to more liquid CDS indexes to reduce exposure to corporate debt
Bloomberg 28 September 2021
What Is a Credit Default Swap (CDS)?