FIG market calm after Fed panic burns fast money
What was all the fuss about? FIG investors breathed a sigh of relief on Thursday as central bankers queued up to calm what many saw as an over-reaction to a potential US withdrawal from quantitative easing. Senior and sub debt recovered towards the end of the week, soothing investors — although the long term outlook for spreads still worried some.
Overall, however, the market may be in better shape than it was before the sell-off — the correction in FIG yields has sorted flighty, opportunistic buyers from real money accounts, and banks are confident that there are good funding windows left this year.
New York Fed president Bill
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