While the UBS analysts have stated that institutional asset managers have contributed to financial stability in positive times, the bank is less certain about the potential impact if the fixed-income markets were to correct from its three-decade long bull run.
For instance, some have already voiced concerns over possible problems in corporate bond funds if a major sell-off triggers heavy redemptions and the underlying bond market is unable to provide the necessary liquidity. [Liquidity Concerns in Corporate Bond ETFs]
For more information on fixed-income assets, visit our bond ETFs category.
Max Chen contributed to this article.