Odds are that with rates in general low, an expanding Fed balance sheet will have to come into play in a much bigger way in the next downturn, and the Fed will probably be slow in figuring that out. Risk assets may struggle to take solace in that.
The former bond king can’t stop the withdrawals, with assets now below $1 billion.
Half of the debt in investment grade corporate bond funds teeters just above junk. If the economy slows and downgrades force passive fixed income managers to sell, will ETF investors feel the pinch?