A recent Bloomberg report that banks like Citi and Goldman Sachs might be planning to launch exchange traded funds (ETFs) based on additional tier-1 (AT1) debt has sparked fears in some quarters about an increase in volatility in the asset class. The introduction of a retail investor base, so the argument goes, will bring a very different dynamic to the market.
That sounds plausible, but is it true? And even if it is, does it matter?
Part of the answer depends on how we think about volatility, part depends on the distinction between primary and secondary liquidity (an Important Thing in the context of ETFs) and part depends on who might buy such a product and why.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
