---
title: Pricing Fixed Income with Liquidity Model
url: https://www.ml-quant.com/papers/ssrn/5187354/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5187354
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5187354
featured: 2025-03-26
citations: unknown
topic: Trading, Microstructure & Execution
---


# Pricing Fixed Income with Liquidity Model

The 'liquid Merton' model improves bond pricing accuracy and offers a new solution for the liquidity premium puzzle by incorporating informed trading.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5187354
- Identifier: SSRN 5187354
- Released: 2025-03-20
- First featured: Quant Letter No. 90 (2025-03-26): https://www.ml-quant.com/issues/2025-03-26/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Trading, Microstructure & Execution

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