Traders Pour $1 Billion Into Biggest Credit ETF to Front-Run Fed
- LQD saw second-biggest inflow after Fed said it will buy ETFs
- Market makers were likely short credit before Monday: Tchir
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The rush into investment-grade bonds picked up after the Federal Reserve said it will step into the market, with the world’s largest credit ETF seeing the second-biggest inflows in its 18-year history.
The $30.3 billion iShares iBoxx $ Investment Grade Corporate Bond exchange-traded fund posted inflows of $1.06 billion on Monday, according to data compiled by Bloomberg. Traders piled into LQD as the U.S. central bank said it would begin buying corporate bonds and certain credit ETFs. Monday’s haul fell just shy of its record one-day intake of $1.09 billion in 2016.