| Amid growing speculation that liquidity in some sectors of the US market such as corporate bonds may be a lot lower than most investors assume, raising risks in the event of another market downturn, one large market player believes liquidity will come from an unlikely source: ETFs.
Exchange traded funds tend to remain liquid in stressed market scenarios and can actually help boost market liquidity, according to the head of iShares Australia, Jon Howie. “Time and again, across multiple asset markets, what we see is liquidity improves in stressed markets and not the opposite. Investors, particularly institutions, look to the ETFs as their source of liquidity,” he says...............................................Full Article: Source
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