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SEC looking at fixed-income markets with 'greater focus': Clayton

SEC looking at fixed-income markets with 'greater focus': Clayton
From Reuters - November 28, 2017

NEW YORK (Reuters) - U.S. Securities and Exchange Commission Chairman Jay Clayton said on Tuesday that the SEC had formed a group to examine fixed-income markets with the goal of protecting retail investors.

Clayton, speaking at the Managed Funds Association Conference, said the SEC was looking at fixed-income markets with greater focus than in the past as such markets would look more like equity markets in coming years.

Developments youve seen in equity markets in recent years, they are going to come to the fixed income markets, he said, following a big push by retail investors into fixed-income products that have become less complex and easier to use.

Retail investors, scarred by the 2008 financial crash, have become risk-averse and poured billions into bond funds against the backdrop of ultra low yields.

U.S-based bond mutual funds and exchange-traded funds have taken in $2 this year for every $1 pulled in by stock funds, according to Thomson Reuters Lipper unit.

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