Quantitative Easing– To try and highlight the sheer size of the FED’s bond buying program, I created the chart below using the chart tool on the St.Louis Fed’s website. It gives us a visual cue into the massive demand created by quantitative easing. The subsequent search for yield by investors, have resulted in artificially depressed yields across the curve and the consequent mispricing of risk in fixed income and equity markets. This phenomenon extends beyond the U.S. as the ECB and the BOJ emulated the FED’s playbook with the ECB taking it one step further and buying IG bonds as well.