Fixed Income ETFs: Bridging the Liquidity Gap in Times of Volatility

Report Summary

Fixed Income ETFs: Bridging the Liquidity Gap in Times of Volatility

Bond ETFs are an increasingly important tool for institutional investors navigating today’s fixed income landscape.

Colby Jenkins
Strategic Advisor

Boston, July 28, 2022 Proponents of an expanded utilization of bond exchange-traded funds (ETFs) argue that fixed income ETFs not only provide an additive source of fixed income liquidity and exposure but also a novel means of price discovery for the underlying cash bonds. As such, they are seen as a panacea for the inefficiencies of the fixed income markets. Proponents take it further, positing that bond ETFs are increasingly necessary shock absorbers to support wider market dislocations.

This brief is the first in a series of Aite-Novarica Group research papers tracking the electronification occurring within the global fixed income marketplace and market structure consequences of further evolution.

Clients of Aite-Novarica Group’s Capital Markets service can download this 12-page Impact Brief. To learn more about the topic covered in this Impact Brief, please contact us at [email protected].

This report mentions Bank of International Settlements, BlackRock iShares, Bloomberg, and State Street SPDR.

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