Bond Liquidity Risk in $3.5 Trillion Funds Defused by Cash

The record $3.5 trillion stockpiled in U.S. fixed-income funds is raising the specter the bond market will buckle under the strain of redemptions once interest rates rise. Simple math suggests there’s little need to worry. While fund assets have almost doubled since the financial crisis, their si…

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Bond Liquidity Risk in $3.5 Trillion Funds Defused by Cash