Federal Reserve policy has been on many minds in recent weeks, widely cited as the linchpin to passing the second stimulus.
For investors in credit hedge funds, including pensions, endowments and foundations, the Fed’s abilities weigh heavily. In fact, as noted by PivotalPath CEO Jon Caplis, during a recent conversation withInstitutional Investor, “we were on the precipice.”
Instead, PivotalPath’s Mortgage-Backed Securities and Structured Credit Index, which dropped 18.6% earlier this year, is within 1.8% of breaking even as of November. What changed? Quick action from the Fed.