ABSTRACT

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."

Report Number:
BIS Bulletin No. 6; Bank for International Settlements No. 6
Author:
Publisher:
Date:
2020-04-14
Series:
Copyright:
2020 Bank for International Settlements
Retrieved From:
Bank for International Settlements: https://www.bis.org/
Media Type:
application/pdf
URL:
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