Fitch warns over bond-ETF risks

08/14/2013 | Reuters · Financial Times (tiered subscription model)

Fitch Ratings warned of the dangers of bond-based exchange-traded funds increasing bond-market volatility as volumes increase, citing a Federal Reserve study focused on the adverse effects of liquidation of corporate bonds. "Other than this most recent bout of volatility, corporate bond ETFs, at their current scale, are relatively untested in a stressed environment," Fitch said.

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Reuters · Financial Times (tiered subscription model)

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