Bond ETFs Awash in Pain May Be Red Flag for Risk Appetite
- Cash bonds shrug off withdrawals, stumping strategists
- Fund flows act as barometer for broader fixed-income, stocks
How High Can Treasury Yields Go?
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U.S. corporate debt exchange-traded funds have bled a near-historic sum of assets over the past two weeks, but holders of the underlying securities are paying little heed.
The bonds themselves are enjoying some of the tightest spreads on record as appetite for new issues remains strong. On one hand, tax reform, rising oil and global growth may be fueling demand for yield. Yet the ETFs -- in the midst of the longest outflow streak in at least seven years -- point to a downturn.