Holdings also included $3.2 million of Expedia and $10.1 million of Ford Motor Co, whose debt rating was downgraded to junk after the coronavirus crisis hit.
The Fed also held $7.97 billion in 16 corporate bond exchange traded funds , the data showed. Roughly half of the corporate bond ETF shares purchased went to funds owned by BlackRock, which is managing the Fed’s corporate credit facilities. BlackRock waived asset management fees on ETFs purchased on behalf of the Fed.
Other global central banks have bought individual corporate bonds for years, but the program is new for the Fed during this pandemic. The aim is to ensure companies can continue to finance themselves, and not be forced into bankruptcy because they are unable to raise needed cash. The program is backed by investment capital from the U.S. Treasury to absorb any losses from defaults.
The Fed has reduced the pace of corporate bond purchases made in the secondary market from about $300 million daily to slightly less than $200 million a day, and it could stop the purchases entirely if market conditions keep improving, Daleep Singh, executive vice president of the New York Federal Reserve said this week.Our Standards:
Why?
Apple has hundreds of billions of dollars in cash. Why the hell is the Fed lending them money?
JPow needs to stock up beer in his fridge
Gotta buy some good to go along with so much bad.
This pisses me off and is so wrong on so many levels.
I have some debt to sell as well, in case the Fed is interested. DM me.
federalreserve Why are you giving money to Apple when millions of ordinary people are suffering? Either breathtaking corruption or incompetence. I look forward to seeing the masses at your doorstep.
Mega cap companies getting that much needed liquidity. Ty Jerome and neelkashkari
Can somebody explain if this is socialism, or how it differs if it's not. I don't care one way or the other, I'm just curious.
Where is Fed's trading desk located?
This is fucking nuts.
Isn’t the government buying up massive interests in US corporations socialism? I though the Trumpers where adamantly against any form of socialism. Give it to people that will spend it and restore consumer confidence.
'The aim is to ensure companies can continue to finance themselves, and not be forced into bankruptcy because they are unable to raise needed cash.' Is Apple about to go bankrupt? The FED is lying again and trying to inflate the market any way they can.
BUllish , finish the game with corona
Whatever happened to laissezfaire? Bueller Bueller Bueller thiswillNOTendWell FedExperiment
Not $tsla !!
Don’t let Fox News find out socialism started under Republican power. Dang.
The noble Fed is just ensuring that there is no supply disruption for us alcoholics!! Viva Fed, long live the Fed!!
Beer 🧐
LiveSquawk Going to tell my kids this is how communism began.
And AOC ewarren SenWarren SenSanders BernieSanders RepKatiePorter SpeakerPelosi RepSwalwell waved it in due to fear and the fact that corps/donors were telling them it was so terrible. 1PctSocialism in a crisis is the only way to go, same as 2008
Fed is now trying to be the next Warren Buffett?
LiveSquawk Since the feds have money to spend on garbage.... buy my mortage from the bank and gimme the deed free and clear.
LiveSquawk fed bubble! Just like the BOJ, the Fed will forever be buying ETF debt...Market will never let the fed reduce their stimulus
LiveSquawk TY federalreserve Great quarter guys & ty for looking out for the bottom 99%
Because $AAPL needs liquidity in their bonds....
Wtf
LiveSquawk FED should pay my taxes for me
Corporate welfare. Sad.
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