Sentences with phrase «out of loan etfs»

But bank loans can not... The worry is that investors will stampede out of loan ETFs, which account for about $ 10 billion of the $ 156 billion in loan fund investments, faster than the ETF managers can sell the underlying loans in their portfolio.

But bank loans can not... The worry is that investors will stampede out of loan ETFs, which account for about $ 10 billion of the $ 156 billion in loan fund investments, faster than the ETF managers can sell the underlying loans in their portfolio.

Not exact matches

From loan ETFs to loan mutual funds, an investor stampede out of loan funds could cause a liquidity crisis as managers are unable to sell the underlying loans as fast as redeemers demand cash.

The ETFs are managed by an authorized participant (also referred to as a market maker or specialist), with the stocks themselves typically loaned out of different pension funds.

This would cause a gap in the value of the ETF and the value of the loans in it, or worse, the possibility the funds may not be able to immediately come up with money for investors looking to cash out.

The way to maintain full deductibility is to make sure that 100 % of all cash paid out by an ETF is either used to reinvest or to pay onto the investment loan.

From loan ETFs to loan mutual funds, an investor stampede out of loan funds could cause a liquidity crisis as managers are unable to sell the underlying loans as fast as redeemers demand cash.