JPMorgan says as much as $ 316 billion in inventory gross sales by the top of the quarter
In accordance with a report in Zero Hedge, that quantity will possible be decrease after final week’s sale following JP Morgan’s authentic evaluation, and might be round $ 40 billion decrease based mostly on the Norwegian compelled sale assumptions, we’re nonetheless speaking about promote within the $ 100 billion and above vary within the days to quarter end.
“General, we additionally see some fairness market vulnerability on the finish of the quarter from pension fund entities. balanced mutual funds sale actions and purchase obligations rebalance in direction of their goal fairness / bond allocations, ”JPM mentioned.
For these hoping the worst is now over, JPM has unhealthy information, Zero Hedge reported.
In one in every of his newest money stream and liquidity reviews, JPM quant Nick Panigirtzoglou writes that as the top of the quarter approaches, fairness stream rebalancing query resurfaces in conversations with clients.
“The rebound in shares and the sell-off of bonds in the course of the present quarter naturally creates an impending rebalancing stream for multi-asset traders, shifting from shares to bonds for pension funds and balanced mutual funds. How a lot of the fairness / bond rebalancing stream ought to we count on? on the finish of the present quarter? ” he mentioned.