Crazy Move in Short-Term Investment Grade Corporate Debt

Below we highlight a six-month chart of CSJ, which is an ETF that tracks the US investment-grade credit sector of the bond market as defined by the Lehman Brothers 1-3 Year U.S. Credit Index. 

Prior to Friday's drastic government action, short-term credit securities were tanking.  From the close on 9/15 to the close on 9/18, the ETF was down 4.21%.  Prior to last week, the biggest 3-day decline for the ETF since it launched in early '07 was -0.75%.  Then on Friday, the ETF was up 6.51%.  To put that move into perspective, the biggest up day for CSJ prior to Friday was 0.57%.  Just another indication of how crazy things got last week!