provide a theory and empirical evidence showing that this liquidity mismatch can reduce market efficiency and increase the … fragility of these ETFs. We focus on corporate bond ETFs and examine the role of authorized participants (APs) in ETF arbitrage …. In addition to their role as dealers in the underlying bond market, APs also play a unique role in arbitrage between the …

This paper provides evidence for regulatory arbitrage within the class of asset-backed securities (ABS) based on …