Behold: The Central Bank Junk Bond Put In All Its Glory

Behold: The Central Bank Junk Bond Put In All Its Glory

Over the past two months, we've warned repeatedly that global asset prices may be set up for a correction once the flow of central bank liquidity ebbs. Between the Fed feeling "behind-the-curve-ish," Draghi pondering a taper and more recently considering hiking ahead of said taper, and rumors that the BoJ's JGB buying scheduling will leave Kuroda short of his target, it appears increasingly likely that the ~$400 billion/quarter CB liquidity put will soon vanish. As Citi's Matt King recently wr
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