The iShares iBoxx $Investment Grade Corporate Bond ETF (LQD) posted a $3 billion outflow on Monday, the largest single-day outflow since the fund’s inception two decades ago, according to Bloomberg data. The outflow was a complete reversal for the LCD as the ETF inflowed for six straight weeks. The fund was up 9% between Oct. 20 and Friday, with investors putting their money back on credit in hopes the Fed would slow the pace of rate hikes. These expectations were disappointed as he warned that “markets are underestimating the risk that central banks will have to become less aggressive and more aggressive.” In response, LQD fell 0.7% on Monday, its worst performance in over a month. As of Monday’s close, the ETF is down 19% for the year, its biggest ever loss. Peter Chatwell, Head of Global Macro Strategy Trading at Mizuho International, said: business insider “The recent rally in funds likely exacerbated exits as the end of the year approached. increase.”
Finsome:The LQD saw its biggest one-day outflow to date as St. Louis Fed President James Bullard warned the Fed needs to be more aggressive.
- credit
- fixed income
- ETFs
- outflow
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