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Institutional Bond ETF Guide: Markets on Demand

White Paper, July 12, 2018

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Many investors are discovering they can no longer rely exclusively on the old bond trading model to meet all their liquidity needs. Seismic regulatory shifts have reduced large banks’ balance sheets, constraining their ability to hold inventory and support market liquidity. As a result, it has become harder and more costly for investors to source bonds and to quickly adjust their portfolios.

Fortunately, bond ETFs allow investors to access bonds without having to rely on bank intermediation. The ETF allows investors to gain liquid, low-cost bond exposure without the structural challenges of the over-the-counter (“OTC”) market.

 

Visit www.iShares.com to view a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal.
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained. Buying and selling shares of ETFs will result in brokerage commissions.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc., or its subsidiaries. All other marks are the property of their respective owners.
BlackRock, Inc. is not affiliated with Compliance Week. 546396
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT TO BE DISTRIBUTED TO THE PUBLIC