Perspectives
Navigating Volatility: Bond Price Discovery Using Fixed Income ETFs
Dustin Lewellyn, Chief Investment Officer of Penserra Capital Management, believes during times of extraordinary volatility in the financial markets that fixed income ETF’s offer greater pricing discovery than individual bonds. “While individual bonds trade in a veiled over-the-counter market,” say Mr. Lewellyn, “fixed-income ETF’s trade on-exchange, like equities. As a result, fixed-income ETF’s reflect real-time pricing since shares of fixed-income ETF’s generally trade more often than their underlying bonds, even in calm markets.”
