This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, click the "Reprints" link at the top of any article.
No Bonds, No Problem
As corporate bond trading volumes wane, some investors are using credit-default swaps to bet on whether bonds will rise or fall in value.
If corporate bonds don’t trade frequently enough for you, one solution is to turn elsewhere.
More and more investors are betting on whether the notes will go up or down in value without owning the securities, using derivatives. This has been attractive for asset managers looking to be nimble in markets or make big bets, especially as corporate-debt trading volumes wane.
Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.