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ETFs Never Had It So Good-The Trillion-Dollar Moment Is Almost Here

Studies show index funds now amplify rallies after cuts and cushion selloffs after hikes, altering how monetary policy transmits to markets. With a Fed cut expected, funds like TLT and LQD are in focus as investors position for lower yields and a potential risk-on tilt.

Benzinga·
US
LQD
-0.18%
Benzinga·
US
LQD
-0.18%

Rare bond signal re-emerged in August 2025, not seen since 1998; LQD breaking resistance. US investment-grade corporate bonds vs. Treasury yields spread at 75 basis points, lowest since 2008. Market shows extreme confidence in corporate debt repayment ability. Wall Street shows love for corporate debt, no extra premium needed. Barometer for financial conditions, borrowing becomes cheaper, no risk premium demanded from companies.

In August 2025, a rare bond market signal emerged, indicating a bullish trend not seen since 1998. The LQD is breaking resistance levels, with the spread between U.S. investment-grade corporate bonds and Treasury yields at 75 basis points, the lowest since 2008. This reflects strong investor confidence in corporate debt repayment, leading to cheaper borrowing costs for companies and minimal risk premiums. Wall Street's enthusiasm for corporate debt suggests a robust market appetite despite high interest rates.

Unusual Whales·
US
LQD
-0.18%
Unusual Whales·
US
LQD
-0.18%

Rare bond market signal, not seen since 1998, re-emerged in August 2025 with LQD breaking past resistance. US investment-grade corporate bonds and Treasury yields spread has fallen to 75 basis points, lowest since June 2008. Market showing extreme confidence in corporate debt, with no extra premium needed to buy compared to risk-free Treasuries. Corporate America taking full advantage. Investment-grade credit spread narrowing, making borrowing cheaper for companies despite elevated interest rates. Wall Street favoring corporate debt currently.

In August 2025, a rare bond market signal emerged, last seen in 1998, with LQD breaking past resistance. The spread between US investment-grade corporate bonds and Treasury yields fell to 75 basis points, the lowest since June 2008, indicating strong confidence in corporate debt. This trend allows Corporate America to borrow more cheaply despite high interest rates, as Wall Street currently favors corporate debt, reflecting a positive outlook among investors.

Unusual Whales·
US
LQD
-0.18%
Unusual Whales·
US
LQD
-0.18%
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