There was yet another article published this week about the liquidity threat of fixed income ETFs. The article, published by Bloomberg, was titled Pension Fund’s Liquid Gold and specifically discussed the use of high yield bond ETFs as a liquidity sleeve in pension fund portfolios.
As more and more investors pile into the iShares IBoxx $ Investment Grade Corporate Bond Fund (NYSE:LQD), so too does the risk for a big price correction.
From BlackRock: Global corporate bond spreads have shrunk this year and are expected to tighten further, should the European Central Bank (ECB) extend its asset purchases. Richard Turnill explains what this could mean to investors.
As investors the world over scramble to find low-risk assets with decent yields, corporate bond issuances are once again nearing the $1 trillion level for 2016.
From Brad Hoppmann: Corporate debt is drawing considerable interest from investors these days, and for good reason — its combination of high yield and low risk is a rare find.