'Evolution to be faster and more disruptive': Bond ETF AUM to double to $1.5trn by 2022

$38.7bn inflows in Q3

Total bond ETF asset under management (AUM) has been predicted to hit $1.5trn by 2022 with the evolution of the market expected to be faster and "more disruptive" than many investors currently anticipate, according to BlackRock.

Heather Brownlie, head of US fixed income at iShares, said the main drivers for the increase in flows was already underway as a result of increased transparency, modernisation of trading through clearing and electronic platforms and the adoption of standardised instruments such as rules-based derivatives. "While fixed income markets were already beginning to evolve prior to 2008, the fallout from the crisis has catalysed a behavioural shift in the market," said Brownlie. Although fixed income ETFs were evolving much in the same way as equity ETFs, Brownlie said the structural features...