Bond ETF Entropy: Bringing Order to the Cash Bond Chaos

The corporate bond ETF — historically prized by the retail investor for its effectiveness in providing corporate bond exposure — is not a singular means for solving the liquidity conundrum in the institutional market.  It is, however, increasingly becoming an invaluable investment tool for institutional investors in today’s market. In this TABB Group report, Bond ETF Entropy: Bringing Order to the Cash Bond Chaos, TABB Group looks at the growth of the corporate bond ETF market and the liquidity dynamics between the ETF and its underlying cash bond market. We illustrate the unique advantages corporate bond ETFs can provide institutional investors in terms of efficiently managing investment flows and enhancing returns in today’s liquidity-strained environment.