Fed Manipulating Corporate Bond Market
Earlier this month, the Federal Reserve announced it would begin buying individual corporate bonds. Now we have our first glimpse at what that means in practice.
On Saturday, the Fed released a disclosure statement that lists the bonds purchased by the central bank.
The amount so far is relatively modest $428 million. Junk bonds made up $15.5 million of that total.
So far, the Fed has engaged in its intervention into the corporate bond market primarily through the purchase of corporate ETFs. The central bank holds a total of $6.8 billion in bond ETFs as of June 19. That was up from