Risks Emerging in Corporate Bond Market, FINRA Says

The corporate bond market is characterized by emerging risks, including a surge in computer-driven trading and volatility of exchange traded funds that invest in debt, according to a report released Dec. 10 by the Financial Industry Regulatory Authority.

“While the data indicate a robust market, they also highlight several areas of potential emerging risk that merit more attention,” Jonathan Sokobin, FINRA’s chief economist, said in a statement. “These issues include increased electronic trading in corporate bonds, volatility of bond ETFs and sector-specific problems in high yield originating in the energy sector.”

Trade Analysis.

FINRA, a Wall Street regulator funded ...