Shorting could drive bond ETF growth

摘要

Exchange traded fund issuers are taking steps to unlock the potential of fixed income ETFs as a hedging tool for European fixed income investors by easing the process for lending and borrowing such securities. Already a well-established practice in the US, lending of ETF units to enable short positioning in the instruments is beginning to gain traction in Europe. The activity remains at an early stage, however, and some providers believe that greater awareness of the hedging benefits could be significant in driving future growth, particularly as assets flood out of fixed income products.