While these new funds will help retail investors access the harder-to-trade, privately negotiated markets, CDS ETFs will likely attract institutional investors, writes Lisa Abramowicz for Bloomberg.
According to Greenwhich Associates, about two-thirds of debt managers utilized ETFs this year, up from 55% in 2013, due to the increased difficulty and liquidity issues in the underlying markets. [Institutions Continue to Expand ETF Usage, Say BlackRock, Greenwich]
“ETFs are gaining traction in asset classes outside equities, especially in fixed income,” which may continue because of changes in market structure, Greenwich Associates analysts said in a recent study.
For more information on new fund products, visit our new ETFs category.
Max Chen contributed to this article.