Today is the last Fed conference in the Bernanke era, and an important one for the markets as investors looks for clarity around upcoming tapering. Tuesday’s flows were flat and a reversal of the recent trend with a small inflow into exchange traded funds and a small outflow from actively managed mutual funds. The primary market was quiet yesterday with no new deals pricing on the day, ending a streak of eight straight days with at least $1 billion in issuance. Three deals remain on the forward calendar, but liquidity is definitely starting to dry up and bid/offer spreads are starting to widen. This morning all markets are quiet as we sit and wait for the Fed news this afternoon.
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