Skip to content

Bond Bears Get Smoked as $3.3 Billion Is Poured Into Credit ETF

  • Easing rate-hike bets, dip-buying lure investors back to LQD
  • Short interest in fund has plunged as high-grade debt rallies

The unexpected rebound across bond markets looks especially painful for one cohort of traders who had stacked up record bets against a $36 billion credit fund.

The iShares iBoxx $ Investment Grade Corporate Bond ETF (ticker LQD) surged by the most in a year on Monday. It was up again on Tuesday morning in New York, headed for the biggest four-day rally since May 2020. That’s likely lashing bears who boosted short interest in the fund to an all-time high last month, according to data from IHS Markit Ltd.