“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.
Farewell to Kansas.
“…we can kill it.”
In pop culture terms, “there’s levels to this shit.”
” And although many market participants focus on quantitative easing and other high powered money supply levels to measure potential inflation, the truth of the matter is that private sector money creation is much more important.”
What to say about Tuesday? Well, a lot actually.