Recent Distress in Corporate Bond Markets: Cues from ETFs   [open pdf - 0B]

From the Key Takeaways: "[1] Amid widespread sell-offs in risky asset classes, corporate bond exchange-traded funds (ETFs) traded at steep discounts to underlying asset values in March. [2] Contributing factors were high market volatility, reduced risk-taking by dealers and investors' reaction to policy decisions. [3] Policy interventions that improve market functioning in a given sector can have temporary yet important spillovers to other segments through portfolio rebalancing by investors."