The times they are A-Changin’: While active funds battle to survive — ETFS are emerging as winners.
In this talk, Petko will analyse recent trading dynamics of fixed income Exchange Traded Funds (ETFs) in an environment of increasing US interest rates. Given the current market microstructure of market fragmentation, financial innovations and destructive technologies, the speaker will address how resilient is the fixed income EFT market in such a fast-changing environment. He will show that there is little support to indicate that fixed income ETFs, through their use of bonds, are a source of additional risk in bonds fire sales when interest rates have been going up. In addition, the reason for ETSs emergence as winners in traditional assets management will also be discussed.
- Petko Kalev, Professor, Finance, La Trobe University