ETFs are eating the bond market

  • 📰 FT
  • ⏱ Reading Time:
  • 20 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 51%

Brasil Notícia Notícia

Brasil Últimas Notícias,Brasil Manchetes

And changing its nature in the process

At the start of the century, Barclays Global Investors launched a weird little fund in Canada, a backwater of global finance. Today, its myriad offspring are rewiring swaths of the $130tn bond market. BGI’s creation was an exchange-traded fund, which occupied a pretty exotic corner of the investment industry. ETFs had only been around for a decade and there were less than 90 in existence, with total assets of $70bn.

However, as the two-lane speedway comment above indicates, the growing size of bond ETFs mean that they are having a mounting impact on the underlying fixed income market — especially in areas like corporate debt. If a bond can be delivered as part of a creation basket, it becomes more tradable. If you want, you can even deliver a massive portfolio of bonds to exchange for ETF shares.

 

Obrigado pelo seu comentário. Seu comentário será publicado após ser revisado.
Resumimos esta notícia para que você possa lê-la rapidamente. Se você se interessou pela notícia, pode ler o texto completo aqui. Consulte Mais informação:

 /  🏆 113. in BR

Brasil Últimas Notícias, Brasil Manchetes