Bond Giant Fretting ETF ‘Blowout’ by 2020 Buys Swaps Instead
- Aberdeen’s Hickmore trades CDS for short-term, tactical bets
- High yield and EM bond ETFs ‘won’t be well-placed’ in crisis
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The U.K.’s largest active manager is taking up arms against what it sees as an imminent liquidity crunch coming to credit markets.
As bouts of late-cycle volatility prompt fears of an impending race for the exits, Aberdeen Standard Investments has been scooping up securities with greater liquidity relative to cash bonds, like credit default swaps.