I'm currently looking into applying bond liquidity out of curiousity.
The Method i'm currently using is the Barclays LCS score (live.barcap.com/publiccp/RSR/nyfipubs/barcap-email-mkting/qps/LCS_In-brief.pdf)
which states that a possible way to grade a bond liquidity is simply
What I do is I measure the spread
This is the part where I'm doubting i'm going the correct way.
I take a total of the entire spread and divide it by the spread of each asset to get a weighted number.
This weighted number is then multiplied by the LCS Score.
My question is if this is a good way to determine liquidity with the limited means I have.
Thank you in advance for any comment/help you can provide.