Betting On The Fed: Tsunami Into Credit Funds Smashes Records
Another week, another blockbuster haul for credit funds.
It should come as no surprise that investors continue to pour money into investment grade and high yield bonds. After all, the market is backstopped by the Fed. And yet, even as the inflows aren't surprising, they are quite large and thus noteworthy indeed.
Investment grade funds took in $9.914 billion in the week ended June 3, Lipper data out Thursday afternoon showed. As far as I can tell, that is a record.
Over the past eight week
I wonder what limitations if, any, there are to the Fed’s willingness to bid on 13% PIK garbage and other paper on the edge of default.
Where is the money coming from?
push button, get money, magic
I was hoping for a more nuanced answer.
It’s just that simple, they create it…..digitally
Folks, don’t overthink this post. This is just fund flow data. This isn’t an analysis of Fed buying. This is just investors.