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.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Boom in active bond ETFs could put total inflows on track for $1tn yearFunds have been aided by retail interest, particularly among younger investors
Read more »
BlackRock leads as ether ETFs rack up $100mn on first day of US tradingDebut not as large as bitcoin ETF launch but in line with expectations
Read more »
SEC approves ether ETFs as crypto moves closer to the mainstreamLatest authorisations follow January launches of first US spot bitcoin ETFs
Read more »
Tearful Strictly star Amanda Abbington reveals some of ‘bullying’ by Giovanni Pernice was ‘of sexual natur...
Read more »
This French Salad Is The Only Salad I Can Eat Without Getting BoredI can't stop eating it, thinking about eating it, eating it, thinking about eating it.
Read more »
Boom in active bond ETFs could put total inflows on track for $1tn yearFunds have been aided by retail interest, particularly among younger investors
Read more »