Here’s What It Looks Like When Everyone Frontruns Jay Powell’s ETF Buying…

What happens when the Fed steps in and says it will buy investment grade credit ETFs as part of a raft of measures aimed at unfreezing critical markets and supporting the US economy during what's set to be the worst economic downturn in modern history? Well, people frontrun that buying, that's what. Witness one of the largest one-day inflows on record for the previously beleaguered iShares iBoxx $ Investment Grade Corporate Bond ETF: That's a $1.06 billion inflow on Monday, and it makes sen

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2 thoughts on “Here’s What It Looks Like When Everyone Frontruns Jay Powell’s ETF Buying…

  1. Yeah, that’s been my definition of Free Market Capitalism all along… Kind of reminds me of the huge battle over North Slope Drilling that went on for 20 years and when The Arab oil crisis came it sank under the waves never to be heard from again… Rhetoric rules not commitment or principal ….just rhetoric and it’s companion ….money.

  2. The Fed is providing liquidity in desperate circumstances. It is not overly worried if it drops a few drachmas on the ground as it runs to open the sluices; best not to mistake it for a “Powell Put.”

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