Authorization

The Fed unveils top corporate-bond ETFs targeted in its $1.3 billion stimulus spree

The Fed unveils top corporate-bond ETFs targeted in its $1.3 billion stimulus spree
Kevin Lamarque/Reuters



A Friday release detailed which corporate-credit ETFs the Federal Reserve bought up from the program's May 12 start to May 18.




BlackRock's iShares iBoxx US Dollar Investment Grade Corporate Bond ETF was the most purchased, with the central bank buying up 2,521,892 shares over the period.




Total purchases reached $1.3 billion by May 18, though a separate release showed the figure swelling to roughly $3 billion by Wednesday.




About $223 million of the Fed's ETF holdings are focused on high-yield debt, exposing the bank to firms at greater risk of default amid the coronavirus recession.




Visit the Business Insider homepage for more stories.




The Federal Reserve's first week of corporate-credit exchange-traded fund purchases primarily drove cash into industry giants including the iShares iBoxx US Dollar Investment Grade Corporate Bond ETF and Vanguard's Intermediate-Term Corporate Bond ETF, a Friday release revealed.
The central bank boosted credit markets through the coronavirus pandemic after announcing its historic move into corporate-debt assets. Purchases of corporate-bond ETFs through the Secondary Market Corporate Credit Facility began on May 12. In the facility's first six days of operation, the Fed bought up $1.3 billion worth of ETFs over 158 transactions.
Here are the Fed's top five ETF holdings after its first week of purchases:
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Июль 2020    »
ПнВтСрЧтПтСбВс
 12345
6789101112
13141516171819
20212223242526
2728293031