Back on March 23, when the Fed unveiled it would start buying investment grade corporate bonds, we said "now that the Fed is effectively all in, it will buy stocks and junk bonds next."

Two weeks later, we were right and this morning the Fed announced it would, as expected, start buying junk bonds (we have to wait for the next crash before the Fed goes literally all in and starts buying stocks and pretty much anything else).

But let's back up. A few days ago, we pointed out that the day so many credit bears had been waiting for had arrived, when a record $150BN in investment grade bonds were downgraded to junk, becoming so-called fallen angels, and sparking concerns about what will happen to the $1.3 trillion junk bond market as hundreds of billions of formerly investment grade debt is downgraded to junk and violently reprices the entire high yield space.