Details On Today's Market Intervention By The Fed's Brian Sack Released
Not only Vincent Chase is in need of an intervention: with the entire hedge fund community levered to the gills praying 3x beta plays will pay off in September or else, the Fed needs to do everything in its power to prevent a downtick, short of making selling and shorting a felony, to avoid a rout in the 2 and 20 community which is barely beating the S&P to date. So yes, it is a day that end in -y, which means the Fed is due to intervene in the market. Today's POMO schedule was just released by Brian Sack's henchmen, and there are 27 cusips maturing between 2016 and 2020 which will be monetized. The total amount expected to be bought back? Over $2 billion, as Morgan Stanley pointed out last week the Fed needs to ramp up its monetization rate due to an above average front-loaded maturity schedule. In other words, the Fed will not allow stocks to drop, and September will once again prove the ultimate contrarian month, probably culminating in 20 straight up days, blowing up yet another swath of the stat arb universe. We will bring you the final results when the POMO closes at 11:00 am.