Bond ETFs of every flavour hammered by building inflation bets
Katie Greifeld, Bloomberg News VIDEO SIGN OUT
Exchange-traded funds across the bond spectrum are bleeding assets as investors brace for higher inflation.
The US$46 billion iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has lost US$7.4 billion in six weeks its worst-ever stretch of outflows, according to data compiled by Bloomberg. Short interest as a percentage of shares outstanding on the US$14 billion iShares 20+ Year Treasury Bond ETF (TLT) is at a three-year high, IHS Markit Ltd. data show. Over US$1 billion was pulled from the US$10 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK) in the biggest weekly exodus since last February.
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