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Popularity of bond funds raises concerns

Some US regulators worry that bond mutual funds and ETFs could become sources of instability in a future market crisis.

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Mr Piwowar had said that he thought some regulatory worries about ETFs were "misinformed", "unsubstantiated" and "overblown".

INVESTORS have embraced bond mutual funds and exchange-traded funds (ETFs) as sound and solid places to keep their money. But that growing popularity rings alarm bells with some regulators, who worry that these same vehicles could become sources of instability in a future market crisis.

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