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ETFs and Junk Bonds Are an Explosive Mix: Lisa Abramowicz

Computer programs seem to be having all the fun in debt markets these days. Human investors, on the other hand, are left scratching their heads, trying to figure out what just hit them.

Even in the $1.3 trillion U.S. junk-bond market, automatic, rapid-fire traders may be showing up more. That may seem odd, because this debt is bought and sold away from exchanges, often via phone calls and emails, making it difficult to trade by computer. But the advent of exchange-traded funds has made that much easier.