Not long ago the Bernanke (DEF) put was in full force. It meant that if the economic news was bad the FED would cut interest rates and bail the market Out. If the economic news was good then stocks would go up on the good news. Fast forward to today and we have the first FED hike and the FED put is slowly but surely getting reversed with the FED funds rate still close to record lows. This is bad news for risk assets globally as the FED is now surely powerless to support asset prices with their monetary policy.
The Incredible 13%-Yielding Junk Bond Fund That’s Backed By The Fed
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Those dark days did do one critical thing for the high-yield corporate-bond
market: made these so-called "junk bonds" too big to fail.
18 minutes ago