Is the Rush to Safety Making Corporate Bonds Unsafe?
Episode Description
Skittish investors seeking safety have poured a lot of money into corporate bond mutual funds in recent years. Which raises the question: What happens when that flow reverses? 📂 Finance & Accounting;Public Policy 🏷️ Research
Brief Summary
Research shows corporate bond fund outflows are sensitive to poor performance, raising concerns about market fragility.
Key points
- Fragility in Corporate Bond Funds. Research shows that outflows from corporate bond mutual funds are highly sensitive to bad performance.
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Tension
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