- The COVID-19 related sell-off in corporate bonds in Q1 2020 caused some commentators to express concern about the liquidity and functionality of fixed income ETFs, led by corporate bond ETFs.
- Widening discounts between corporate bond ETFs and NAV pricing after COVID-19 was cited as further evidence of ETF illiquidity.
- Scant evidence that liquidity infrastructure around ETFs failed during March/April 2020 period - trading spreads were much narrower in fixed income ETFs than the underlying bonds.
For further details see:
Bond ETFs Show Maturity During Covid Market Mayhem