Bond Buyers Readying Defenses for 2016 Leave Nothing to Chance
- Bond exchange-traded funds, total-return swaps used to hedge
- Investors try to revive shrinking credit-default swaps market
Assessing the Health of the U.S. Bond Market
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Wall Street is searching for new ways to protect corporate bond investments amid concern that traditional hedging tools aren’t working properly as default rates rise.
BlackRock Inc. is promoting strategies using exchange-traded funds, which track bond indexes and trade like stocks. It’s also part of a group of investors including Pacific Investment Management Co. and BlueMountain Capital Management that’s pushing to revive contracts that insure against default.