ETFs are setting the tone for the underlying bond market. Here's why
Publishing timestamp: 2023-04-05 12:02:01
Summary
The rise of fixed income ETFs is helping to modernize the bond market by increasing electronic trading and allowing investors to trade and hedge in the underlying corporate bond market. Bond funds have taken in $47 billion in the first three months of the year, making up roughly 60% of flows. Electronically traded bond ETFs are able to lead underlying bonds due to instantaneous exchange, and the underlying corporate bond market is following the ETF market.
Sentiment: NEUTRAL
Tickers: MKTX,
Keywords: markets, marketaxess holdings inc, exchange-traded funds, stock markets, business news, investment strategy,