“March was an extremely stressful month for markets and the system. The Fed cycle is breaking things. To us, having lived through the GFC, not a surprise. We’ve been writing for quite some time now the mark-to market risk and minefields. It began with the issues in the United Kingdom and have now surfaced in the US. The Fed still seems intent on the separation of financial stability issues and monetary policy. We see them as one and the same after years of ZIRP and QE. And once again the Fed’s balance sheet is expanding. Correlation versus causation. We’ve always adhered toward correlation. And this pocket of time is proving no different.”

Listen to Monday Minutes with Gregory Faranello, CFA–Head of U.S. Rates at AmeriVet Securities.