We analyzeliquiditycomponentsofcorporatebondspreadsduring2005–2009usinga new for investmentgradebondswhiletheeffectisstrongerbutmoreshort-livedfor underwriterandtheliquidityofbondsissuedbyfinancialfirmsdriesupundercrises. Duringthesubprimecrisis,flight-to-qualityisconfinedtoAAA-ratedbonds