A $31 Billion Credit ETF Hits Lowest Since 2010 as Outflows Grow
- LQD sees nearly $800 million of outflows in single day
- Historically aggressive Fed has helped spark global selloff
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The Federal Reserve’s campaign to quell inflation is crushing credit as well.
The $31.3 billion iShares iBoxx $ Investment Grade Corporate Bond ETF (ticker LQD) slid to its lowest level since May 2010, when a flash crash shaved 1,000 points off the Dow Jones Industrial Average. The drop follows data overnight that showed a nearly $800 million outflow for the fund tracking US dollar-denominated high-quality bonds, which is poised for for its biggest weekly cash exodus since June.