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Wait till you find out the Fed buys corporate bond ETF's nowdays too...
by cavisne 5y ago
Wait till you find out the Fed buys corporate bond ETF's nowdays too...
- quickthrowman 5y agoTheir reasoning was sound (liquidity mismatch), but I hope it stops there and doesn’t continue into buying equities like the Bank of Japan. More about why the Fed stepped into the corporate bond market to provide liquidity in 2020: https://www.brookings.edu/wp-content/uploads/2020/10/wp69-liang_1.pdf https://www.brookings.edu/wp-content/uploads/2020/10/wp69-li...
- pgwhalen 5y agoIt's worth pointing out that the Secondary Market Corporate Credit Facility has ended, and the Fed has sold everything it has bought [0]. But of course the precedent has been set, which may be why you chose to use the present tense. [0] https://fred.stlouisfed.org/series/H41RESPPAABNWW https://fred.stlouisfed.org/series/H41RESPPAABNWW