Corporate bonds

The Fed appears to be circumventing the law to buy corporate bonds

(Bloomberg Opinion) – From the moment the Federal Reserve announced how it would buy bonds for its $250 billion secondary market corporate credit facility, something seemed off. After all, the central bank had already established criteria for buying individual corporate bonds, separate and apart from exchange-traded funds. And yet, the Fed this week unveiled a […]

Corporate bonds

Why does the Federal Reserve buy corporate bonds?

The Federal Reserve began buying corporate bonds on Tuesday under a $250 billion program funded by the CARES Act, which was approved in March. The idea is to support companies and their employees. When a company wants to borrow money, it can issue bonds. Buyers of these bonds lend money to these companies. Now the […]

Corporate bonds

The Fed says it will start buying individual corporate bonds

The Federal Reserve is expanding its foray into corporate credit to now buy bonds from individual companies, in addition to the exchange-traded funds it already buys, the central bank announced on Monday. As part of an ongoing effort to support market functioning and ease credit conditions, the Fed has added features to its secondary market […]

Corporate bonds

The Fed will increase its purchases of corporate bonds on the secondary market

The Federal Reserve said on Monday it would expand its efforts to support the corporate debt market by buying a “broad and diverse market index” of U.S. corporate bonds in the secondary market. The central bank says purchases of individual corporate bonds will be used to create a ‘corporate bond portfolio’ that meets the Fed’s […]

Corporate bonds

The Historic Corporate Bond Rally (NYSEARCA:LQD)

Most investors are aware of the historic nature of the stock market rally. Since the March 23 lows, the S&P 500 (SPY) has rebounded nearly 40%. Such large gains over such a short period of time have not been seen since the Great Depression. A stunning recovery is also underway in investment grade corporate bonds, […]

Corporate bonds

Corporate bonds: corporate bond issues more than doubled in April-May

Mumbai: Lockdown seems to have opened the floodgates for corporate bond issues in India. The first two months of FY21 were the best in decades, with companies raising Rs 1.63 lakh crore – more than double the same period last year and nearly four times from April to May during of FY19 – as rates […]