“Liquidity is the main reason that we’re using high-yield ETFs right now rather than high-yield bonds,” Tim Anderson, chief fixed-income officer at RiverFront Investment Group LLC, said in the Bloomberg article. “In the good old days you could call up one of the major firms and there’d be a halfway decent shot you could sell $15 million, $30 million of bonds to them on the line. They’re not keeping the same inventories anymore.”
“ETFs have increasingly become a more viable way to express credit views,” Eric Gross, a credit strategist at Barclays Plc, said in the article. “We’ve seen corporate bond liquidity go down across both investment grade and high yield.”
SPDR Barclays Capital High Yield Bond ETF
For more information on high-yield debt, visit our high-yield bonds category.
Max Chen contributed to this article.