- It's a historic milestone for the Fed, which hasn't yet bought ETFs.
- The central bank's Secondary Market Corporate Credit Facility will begin purchases today of eligible exchange-traded funds invested in corporate debt, seeing the method as a fast way to direct money into the credit markets.
- The program, managed by BlackRock (NYSE:BLK), centers around investment grade corporate bonds, though some will be high-yield.
- Another Fed facility designed to buy debt directly from issuers, the Primary Market Corporate Credit Facility, is set to launch "in the near future."
- Previously: Frenzy of corporate debt offerings (May. 12 2020)
- Related ETFs: PTY, LQD, BND, AGG, RCS, BOND, BTZ, SCHZ, PCM, DBL, BHK, FBND, IUSB, CORP