Institutions accept credit ETFs

摘要

Institutional demand for credit exchange traded funds continues to rise, cementing the product as an alternative to cash bonds for managers that are concerned about the safety of their portfolios amid thinning liquidity. Assets under management in credit ETFs have grown nine-fold since 2009 to over US$120bn, according to Tabb Research. The shift has accelerated more recently -global fixed income ETF assets jumped by 20% in 2014 to US$483bn according to ETFGI - as concerns surrounding corporate bond liquidity trump long-heldreservations about the ability of an ETF to effectively track a set of underlying bonds.