Fed will begin ETF purchases today

Fed will begin ETF purchases today”

The program, under the supervision of the New York Fed, will invest in ETFs specializing in "fallen angel" companies - those considered worthy but whose credit ratings have been tarnished by the health crisis.

The New York Fed said the secondary market corporate credit facility is expected to begin purchasing eligible ETFs in early May. BlackRock Inc. was hired to manage the program for the Fed. The central bank, recognizing it would take longer to buy bonds, saw ETFs as a fast way to direct money rapidly into credit markets, said people familiar with the matter.

The New York Fed said the Treasury Department had made $37.5 billion of the $75 billion equity investment it will make in the special objective vehicle established by the central bank to undertake the primary- and secondary-market credit facilities.

The "preponderance of ETF holdings" will consist of those mainly exposed to USA investment-grade corporate bonds, with the remainder largely exposed to US high-yield corporate bonds, the New York Fed announcement said.

More news: Amazon Unveils New Fire HD 8 Tablet With Faster Processor, USB-C

The Federal Reserve on Tuesday started a corporate bond purchasing program that's meant to help "fallen angel" companies that have been affected by the corornavirus pandemic.

The facility is one of several tools recently created by the Fed to improve market functioning in the wake of the coronavirus pandemic, which has led to substantial market volatility.

The Fed has also slashed short-term rates to near zero levels and bought large amounts of Treasury and mortgage bonds, swelling its balance sheet to $6.7 trillion, from $3.8 trillion last September.

Like this



14 May 2020
Schools reopening: Teaching unions demand Williamson AXE plans - "Not safe"
She said it was "irresponsible to publish plans and suggest timetables without disclosing all scientific advice". Halfon suggested these could be staffed by "volunteers, graduates, an army of retired teachers".

14 May 2020
Mike Tyson-Evander Holyfield III could finally happen -- for charity
We have to come up with something that is not a knockout grudge match. "I told you I had something for you". White said on the popular Tim and Sid podcast. "But Mike would have to want to do it as well".

14 May 2020
Union polls NBA players whether they want to return this season
He started his journalism career at The Bee more than 20 years ago and returned to cover the Sacramento Kings in September 2018. According to Wojnarowski, Tuesday's conference call was focused on health and safety amid the continuing COVID-19 pandemic.

14 May 2020
Raise a glass to ‘Hamilton’ coming to Disney + a full year early
However, Disney bumped up the release by over a year due to theaters being closed indefinitely over concerns of the coronavirus . It will feature the original Broadway cast, aiming to bring together the best elements of live theatre, film and streaming.

14 May 2020
Mnuchin says unemployment numbers will 'get worse before they get better'
Mnuchin said that his predictions are based upon what he sees is the rate of reopening in a careful way. And this is all being monitored very, very carefully", he added.

14 May 2020
Pope praises nurses' role in fighting coronavirus
I think the idea of the Pope the right to pray for everyone. None of us expected the coronavirus pandemic, he said. We aren't praying against each other...

14 May 2020
Serological surveys to look for COVID-19 immunity in Canadian population
Goa will test all individuals entering the state for COVID-19, state health minister Vishwajit Rane has said. Elecsys Anti-SARS-CoV-2 test - is said to be 100 per cent accurate.

14 May 2020
COVID-19: South Africa To Ease Lockdown Further By End Of May
Another day has passed under lockdown level 4 and the number of COVID-19 cases has skyrocketed to 12 074 from 11 350 infections. He cautioned that if South Africa lifts the lockdown too abruptly, it risks a "rapid and unmanageable surge in infections".

14 May 2020
Twitter Makes Working From Home a Permanent Option for Some Employees
Previously it had planned to grow headcount this year by 20% or more compared with its roughly 4,900 employees at the end of 2019. Christie said that the past three months have proven that the company can make large-scale remote working a viable option.

14 May 2020
Upcoming Chrome Browser Feature Lets You Group Together Multiple Tabs
The group name appears to the left of the tabs and the color is shown underneath the tabs and outlines the current tab. Others , however, would organize tabs by urgency - labeling them things like "ASAP", "this week", or "later".