Junk Bond ETFs Are Again Defying Doubters and Liquidity Fear

  • About 74 million HYG shares change hands with few stress signs
  • No sign of forced selling even as cash bond spreads widened
Photographer: Towfiqu/Moment via Getty Images
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On a day when the whole world seemed to be jettisoning junk bonds, Geof Marshall had a plan to buy.

The idea was that, as exchange-traded funds struggled to keep up with a wave of redemptions spurred by crashing oil and coronavirus fears, he was going to swoop in and buy bonds from the ETFs on the cheap.