Fitch: High-Yield ETFs: Investors Seeking Liquidity During Periods of Market Volatility

Recent data from the largest 20 investment grade and high yield (HY) bond exchange-traded funds (ETFs) indicate bond ETF trading patterns shifted materially during five market stress periods over the last 21 months, according to a new Fitch Ratings report.

The trading swings are particularly noticeable in the HY market. Fitch's analysis indicates that investors are favoring ETFs as vehicles to express changing views on the HY market. This reflects the lower levels of liquidity in the underlying HY bonds, and the importance of liquid investments amid market uncertainty on interest rates and macroeconomic fundamentals.

The full report 'High Yield Bond ETFs: Investors Seeking Liquidity During Market Volatility' is available at 'www.fitchratings.com.' This report is a follow up to a report Fitch published in May, 2014 on High-Yield ETFs.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: High Yield Bond ETFs: Investors Seek Liquidity During Market Volatility

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=795528

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