The Fed to sell $13.7B in corporate bond ETFs this year

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So in layman’s terms. Good or bad for stocks?


Maybe I’m stupid but $13 b doesn’t sound like much.


Probably means the beginning of the FED selling every single shit it bought during the pandemic, so I’d say this move alone isn’t too shabby but overall it’ll be bad for stocks as it could be an indicator the FED will stop the QE


Sounds like a rounding error for them


The demand for quality credit assets is very strong right now. I know some large institutional investors have stayed away from investment grade corporate bonds b/c the spread compensation was so low. The Fed has bought P&G bonds maturing in 5 years with a spread of 9 bps (!!) — this market has been historically expensive for a few quarters now. The Fed will step away slowly, spreads will slowly increase by a modest amount and the investors that have been priced out of the market will step back in. Investors in these markets have been wanting the Fed to step away for a while now because they are no longer needed to help the market’s confidence. I don’t think this will have much of an impact on risk assets (equities).