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Yesterday markets saw a large default in the energy space.  Arch Coal filed for Chapter 11 bankruptcy citing tumbling domestic coal demand as the reason. Arch Coal’s default on $3.2 billion will raise the metals and mining sector’s trailing 12-month default rate from 11% at the end of December to 15% through today.  However, it will bring the default rate for the coal sub-sector to an unprecedented 43%, according to Fitch Ratings

In the coming days the Federal Reserve is set to end Quantitative Easing, the six year economic stimulus experiment. Quantitative Easing, or “QE” has been a hotly debated topic over the years. We have discussed its impact on markets and investor behavior often. Whatever one’s view on the moral hazards of QE, there is no denying the actions taken by the Federal Reserve over the past six years have had substantial impact on financial markets, fixed income, risk taking and volatility.