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The article explains one issue is that the investors in bond ETFs have an unrealistic expectation of liquidity. When the ETF becomes illiquid and is dropping q
by acover 8y ago
The article explains one issue is that the investors in bond ETFs have an unrealistic expectation of liquidity.
When the ETF becomes illiquid and is dropping quickly, the conservative bond investor may rush to sell and cause the ETF drop significantly in price despite the underlying bonds still being sound.