How The Fed Put Has Affected Risk Assets
The US Federal Reserve (Fed) asset purchases significantly affect the value of risk assets (equity, commodity, real estate, etc.). We recently completed an extensive research project to learn more about this effect and how we might use this information to better trade the financial markets….
World War C: Illiquidity is CRUSHING Corporate Debt Markets
Cumulatively the markets are at or near record highs in illiquidity. What makes this collapse so devastating is the breadth of illiquidity across most sectors of the market. The Volcker rules that were passed in 2009 to protect banks had unintended consequences. Banks stopped making markets in…
World War C Continues: Quick Update On The Fed’s Battle Lines
The long end of the yield curve, as measured by the TLT ETF, experienced a -9.8% intraday peak-to-valley drawdown on Wednesday. The TLT finally bottomed at 2:40 est. This was the exact time of the Fed’s last auction where it began purchasing 30-year US Treasuries. This auction was unscheduled…