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Corporate Bond Market Has Potential Emerging Risks, Finra Says

  • Risks include electronic trading and volatility of bond ETFs
  • Most figures still point to a healthy market, report says

The corporate bond market is characterized by emerging risks, including a surge in computer-driven trading and volatility of exchange traded funds that invest in debt, according to a report released Thursday by the Financial Industry Regulatory Authority.

“While the data indicate a robust market, they also highlight several areas of potential emerging risk that merit more attention,” Jonathan Sokobin, Finra’s chief economist, said in a statement. “These issues include increased electronic trading in corporate bonds, volatility of bond ETFs and sector-specific problems in high yield originating in the energy sector.”