Almost everybody seems to believe that what the Fed is currently doing is identical to a large and substantial QE program, with many market participants extrapolating the initial purchase pace of 60bn/month to last at least until April, possibly even until the end of June 2020. This - ceteris paribus - implies a cumulative growth of bank reserves (or excess liquidity, if you will) of 390bn-510bn (this is wrong in our view, since things can’t be held equal…). Anyhow, everybody probably knows by now that when the Fed does QE, everything just turns perfect – which is indeed reflective in price-action across global ... (full story)