Hedge Funds Contribute to Volatility in Junk Bond ETFs
August 26, 2014 at 09:30 AM EDT
The notoriously illiquid junk bond market has experienced wide short-term swings as hedge funds execute broad bets with high-yield bond exchange traded funds. According to J.P. Morgan, hedge funds account for 30% of holdings of junk bond ETFs and have contributed to the recent swings in the ETFs as...