Institutional analysis: the Fed is regarded as the “helicopter parent” and the decision to sell corporate bonds did not disturb the market

Summary

[Institutional analysis: The Fed is regarded as the “helicopter parent” and the decision to sell corporate bonds did not disturb the market]The Fed’s plan to begin selling its unprecedented corporate bond assets has instead reinforced a view that many have warned: investors are now convinced that, if needed, The Fed will rescue them again. Analysts believe that, as far as the bond market is concerned, the Fed is a bit like a “helicopter parent”, and their intervention in the bond market has already been expected by investors. Eric Beinstein, chief strategist at JP Morgan Chase, said that from now to the end of the year, the Fed’s corporate bond sales should account for a small proportion of the secondary market’s transaction volume and will not “have any substantial impact on interest rate differentials.” (Golden Ten Data)

　　MidlandThe Reserve Plan began to sell its unprecedented corporate bond assets, instead reinforcing a view that many have warned: investors are now convinced that, if needed,MidlandThe Chu will rescue them again.AnalystI believe that, as far as the bond market is concerned,MidlandChu is a bit like “helicopter parents”, and their intervention in the bond market has been expected by investors.JPMorganChief strategist Eric Beinstein said that between now and the end of the year, the Fed’s corporate bond sales should account for a small proportion of the secondary market’s trading volume and will not “have any substantial impact on interest rate differentials.”

(Source: Golden Ten Data)

(Editor in charge: DF544)