This corner of the market is proof the Fed stimulus is working, chart analyst says

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This corner of the market is proof the Fed stimulus is working, chart analyst says (via TradingNation)

"They've been able to come into the credit markets and stabilize that area; we see credit spreads starting to tighten up a little bit," said Maley. "The fact that they're starting to stabilize gives people the kind of confidence they need to be able to dip their toes back into the market at a time when we absolutely need it.", president of Gradient Investments, agrees that monetary easing should boost confidence among investors.

"This panic and negative sentiment tends to freeze up the short-term credit markets," Binger said during the same segment. "The Fed, they did unleash all the tools they had. It was a double bazooka, and I think it's working, and you're starting to see it in the credit markets. ... The general credit markets for investment grade and high yield is trying to creep back. And I think the Fed is responsible for that.

The municipal bond and high-yield bond ETF were higher on Thursday, though investment-grade corporate bonds were lower.

 

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