FYI: Working on ways to position for a potential collapse in corporate bonds? JPMorgan Chase & Co. has an idea: the exchange-traded funds that track the market.
While ETFs would experience collateral damage if a “credit bomb” were to go off, their greater liquidity through the secondary market might leave them less damaged than other alternatives, JPMorgan strategists including Bram Kaplan and Marko Kolanovic wrote in a note Friday. The Bloomberg Barclays US Corporate Bond Index is down 3.7 percent for the year, compared with a gain of around 6 percent in 2017.
Regards,
Ted
https://www.fa-mag.com/news/jpmorgan-says-bond-etfs-may-help-neutralize-a--credit-bomb-41839.html?print