JEPI - Weekly Commentary: Summer Of 2020
QE fundamentally changed finance. What commenced at the Federal Reserve with a post-mortgage finance bubble, $1 trillion Treasury buying operation morphed into open-ended purchases of Treasuries, MBS, corporate bonds and even corporate ETFs holding high-yield "junk" bonds. Markets assume it's only a matter of time before the Federal Reserve adds equities to its buy list.
For years now, Treasury bonds (and agency securities) have traded at elevated prices - low yields - in anticipation of an inevitable resumption of QE operations/securities purchases. Conventional analysis has focused on persistent disinflationary pressures as the primary explanation for