The Fed does not want to do credit analysis. They do not want to be the primary purchasers of debt. As a lender of last resort, they want to buy debt from prima

The Fed does not want to do credit analysis. They do not want to be the primary purchasers of debt. As a lender of last resort, they want to buy debt from primary purchasers in the hope that they valued the debt correctly. Of course... Everyone with poor debt quality would LOVE to sell to the Fed... One of the big lessons of ETFs the past year has been whether the underlying "fake" liquidity of ETFs would cause problems for the underlying real poor liquidity of bonds. The Fed is buying ETFs because the price of the ETF goes into the underlying bonds. The Fed is buying bonds. They think it's close enough to buying the bonds. It's really bizarre to me that you think a poor definition of liquidity is that you personally cannot sell bonds. I don't care if the market is bad or your phone is too broken to make your sell order. Complain to your boss that the market was fine but you couldn't make the trade. See what they say. You cannot trade. Your liquidity is bad.