http://www.ft.com/cms/s/0/cc44cd76-d918-11e4-b907-00144feab7de.html#ixzz3ZjfNyEvQ
Those who fear these ETFs hold the seeds of the next crisis have been circulating the latest quarterly letter from investment guru Howard Marks excitedly. His disquisition on liquidity (www.oaktreecapital.com/MemoTree/Liquidity.pdf) is a must read for anyone considering purchasing an ETF comprised of corporate bonds, emerging market debt or leveraged loans.
That the alchemists have created another accident in waiting has been a fear of bond market mavens and regulators for several years. Fixed income ETFs now hold $330bn in assets in the US alone, according to ETF.com. Their rise has been one of the great market changes since the crisis, and there are many reasons to suspect they could play at least an exacerbating role in the next one."
This is going to be interesting...
