A major Nordic sovereign fund recently attempted to acquire approximately $100 million worth of Chinese bonds in the open market. What they discovered was sobering: achieving a reasonable volume-weighted average price (VWAP) would require roughly 8 months of continuous accumulation.

This isn't just a curiosity—it reveals something critical about liquidity fragmentation in global debt markets. When an institution of substantial size can't efficiently absorb a nine-figure position without creating months-long execution drag, it signals deeper structural issues. The bonds in question likely lack sufficient trading depth, with spreads widening dramatically as order sizes increase.

The implication cuts both ways. For buyers, it means patience becomes strategy. For sellers, it highlights why many positions remain effectively illiquid despite being theoretically tradeable. In traditional finance, this scenario often prompts questions about market infrastructure and dealer participation.

It's a reminder that size always finds friction.