High-Yield ETFs Lure Investors Bypassing Dealers: Credit Markets
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Exchange-traded funds that own junk bonds are attracting unprecedented sums of cash from institutional investors seeking to slip in and out of the market as dealer inventories decline.
Institutional holders own 51 percent of BlackRock Inc.’s high-yield ETF, up 11 percentage points this year, according to data compiled by Bloomberg. The portion at State Street Corp.’s fund has grown to 60 percent, a rise of 18 percentage points.