The lack of liquidity in the fixed-income markets is "without a doubt" the biggest concern Janus Capital Management has about fixed income right now, its chief investment officer of fixed income said Thursday.
"The regulatory environment we're in, the issues that we're facing post '08, are finally coming to fruition in the fixed-income markets. The illiquidity in the markets is a real problem right now," Gibson Smith said in an interview with CNBC's "Power Lunch."
Smith said liquidity is really a gauge of how quickly the firm can exit or enter a position the marketplace.
"Over the last 10 years, we've been able to freely trade $25, $50, $100 million positions in the market but today those positions have shrunk to $1, $2, $3 million on the bid offer," he said.