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Weekly Notebook Review | Portfolio Construction + Market Setup $SPY $QQQ | May 24, 2023

Hedgeye Podcasts

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The Pressures of Leverage in the Fed's QE Period

The Fed started raising rates, and you had this problem in these leverage funds where they own very low coupon bonds. They were rotating that inventory out and then buying four and five coupon bonds because they saw what the Fed was going to do. And they got a run leverage trade. So I think that at different points, there's been some distress in terms of getting deals done.

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