Evergreen tweet but: read Matt Levine today on bond market liquidity, specifically, how the existence of bond ETFs have softened the blow for firms attempting to sell bonds to raise cash in times of crisis, where the primary market is illiquid.https://www.bloomberg.com/opinion/articles/2020-03-12/the-bull-market-caught-a-virus …
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This is a close cousin to "You want equity exposure, because you expect to live many more years, but since you're not a market professional you really shouldn't want to pick equities per se, so just buy a low-cost Vanguard ETF." But it's a subtly different flavor.
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You know it didn't occur to me at the time but it really was nice that I could liquidate that position in, like, minutes, at marginal cost, compared to the last time I had to do it by hand
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I doubt that the criticism is really that it *doesn't* create value. The criticism is that the personal financial rewards are perverse and cause a misallocation of talent and resources.
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