The $13T Gorilla... What to expect when QE Switches from Easing to Tightening

bee

After heading into the uncharted territory of quantitative easing, the world’s central banks are starting to plan their course through the uncharted waters of quantitative tightening.

and,

"You know what they say about mountaineering right? The descent is always more dangerous than the ascent," said Stephen Jen, London-based chief executive of hedge fund Eurizon SLJ Capital Ltd. "Shrinking the balance sheet will be the descent."

additionally,

Fed officials’ current game plan is to start the balance-sheet run-down with a phasing out of reinvestment in maturing securities. The central bank will have $426 billion of its Treasuries mature in 2018 and another $357 billion in 2019. "If the Fed tapers reinvestments, the market will have to find a way to absorb the additional supply,"

markets-start-to-ponder-the-13-trillion-gorilla-in-the-room