Resistance is futile, a Bank of America Merrill Lynch report noted. Based on the European Central Bank’s corporate sector purchase program – buying corporate bonds – free markets are no longer free. The “creeping influence” of the CSPP program can now be felt in almost 70% of eligible corporate issues. Liquidity has deteriorated and bunds with their negative interest rates, well they are just flat out “embarrassing” other investments. “Magic people” can distort free markets for only so long The power of ECB “magic people,” who at times operate above reproach, is evident when their logic is questioned. They, after…
BAML Says "Resistance Is Futile"
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.