Monday was a train wreck from start to finish.
Well, things took a decisive turn for the worst just after the European open…
Don’t worry, it should be fine.
“Am I wrong?”
“The ability to achieve HY short exposure via exchange listed products has allowed a wider range of market participants to put the trade on.”
60% of the time…
“…the tail risk associated with the bond trade unwind has become more visible.”
So in the meantime…
“Lions, tigers, and bears, oh my!”
And so the holiday-shortened week comes to a close and it delivered everything that could have been reasonably expected of it.
You know there’s probably something a bit quixotic about the crusade to warn of an eventual blowup in the high yield ETF space. But…
Boy, I’ll tell you what: you people are yanking money out of bond funds like there’s no tomorrow.
The bottom line: for credit investors, the risk of central banks becoming more hawkish is now a two-headed beast.