Bank Debt Could Be Fueling the Corporate Debt Demand | ETF Trends

Bank Debt Could Be Fueling the Corporate Debt Demand | ETF Trends

The corporate bond market can thank banks for the rising need in corporate financial obligation as banks continue to load the proverbial boat with more debt to balance their money reserves.Big gamers like Goldman Sachs and Bank of America have been providing billions in bonds after strong third quarter results. Last year, corporate bond demand slowed as credit spreads tightened, triggering investors to wonder whether they wanted to take on the included credit threat or stick with more secure federal government bonds. The fund is a fund of funds, and uses an indexing investment technique created to track the efficiency of the Bloomberg U.S. Corporate Bond Index, which measures the investment-grade, fixed-rate, taxable business bond market.The index consists of U.S. dollar-denominated securities that are openly issued by commercial, utility, and financial providers.


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