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Andy Constan, founder and strategist at Damped Spring Macro, reports that the leveraged ETF rebalance flow currently amounts to $9 billion in buys each day.
He observes that this flow is likely being fully offset by selling associated with multi-asset rebalancing.
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Constan has previously called for the Federal Reserve to cut short term rates and halt balance sheet expansion, according to a recent note. He also discussed how Warsh’s possible confirmation, coupled with Powell’s resignation, could secure enough votes for a June rate cut in an earlier commentary. These views reflect Constan's ongoing focus on central bank policy and market flows.