Note to Fed: Please start buying!

  • A lot of investors (including plenty of greenhorns) have purchased boatloads of investment-grade debt over the past few weeks, says the team at Bank of America.
  • They purchased on the idea that they could sell to the greater fool (the Fed), but the Fed hasn't actually been buying anything yet.
  • "Would be helpful if you could soon begin buying broadly and in size," pleads BofA.
  • The team notes bond issuance of $296.6B hit a record in April, and this followed $261.4B in March. The previous monthly record was $175.5B. Year-to-date, there's been issuance of $807.1B, the fastest start ever, and 82% above last year's pace.
  • Related ETFs: PTY, LQD, BND, AGG, RCS, BOND, BTZ, SCHZ, PCM, DBL, BHK, FBND, IUSB, CORP

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