ETFs

Apollo’s creed: Bond bears take on ETF buyers

Investment firm says ETF and other index investors are glossing over differences in corporate bonds, distorting their values

Monday 31 October 2016 at 13:38

Leon Black, chairman and CEO of Apollo Global Management
Leon Black, chairman and CEO of Apollo Global Management Photo: Getty Images

A number of investors have argued that exchange-traded funds are creating new risks in the market. Apollo Global Management is putting money on it.

The New York asset-management firm is betting against some corporate bonds on the theory that their value is being inflated by index buyers who are glossing over differences between individual borrowers.