The New ‘Fight The Fed’ Trade
What if they had a selloff and nobody sold?
That seems like a bizarre proposition, but it's actually an apt characterization of bonds this year, or at least as it relates to yields versus fund flows.
There are two main flows stories in 2023. The first is just money market flows. Around the world, more than $1 trillion flowed into money funds over the first nine months of the year.
With last week's big haul, the YTD inflow to US "cash" funds stood at more than $970 billion.
There's no myste
“no credit risk and no duration risk” = same as FDIC guarantee. Thanks for the reassurance, H.
What is the pain trade now?
We may look back at this moment as the peak for ETFs and the beginning of a long run for WTFs.