The liquidity of portfolio holdings is a significant factor in whether a fixed-income strategy makes sense in an intraday-traded ETF, end-of-day-priced mutual fund or interval fund with quarterly redemptions, says Highland Capital Management chief product strategist Dustin Norris and portfolio manager Chris Mawn. The transparency and liquidity requirements of ETFs make them particularly suited for index-based strategies, while the firm uses mutual funds and other accounts for active products.
Watch the video here: http://www.ignites.com/c/1596153/186113/liquidity_consideration_bond_product_design/