The Fed begins purchases of up to $250 billion in individual corporate bonds
Main Street traders have been crushing Wall Street in recent months. Goldman Sachs breaks down what retail investors should buy to keep winning - and lists the 12 stocks leading the charge.
The Fed's first purchases of individual bonds arrive months after the program's March 23 reveal set the bottom for risk markets. Investors flocked back to stocks and corporate debt after the announcement, heralding the facilities as a backstop for both asset classes. Before any individual bonds were taken up by the Fed, the S&P 500 rallied out of its coronavirus slump on the policy-fueled optimism and hope for a rapid economic recovery.
The central bank has taken in roughly $5.5 billion through its ETF purchases so far. Its Primary Market Corporate Credit Facility, which will focus on buying debt directly from firms, is not yet operational and can take in up to $500 billion of corporate credit.Participating issuers need to have been rated investment-grade as of March 22 to participate in the Fed's individual bond purchases, according to a term sheet.
The $600 billion facility was also revealed in late March but has run late in starting operations due to last-minute changes, chairman Jerome Powell said during a Wednesday press conference.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Systemic racism slows economic growth: Dallas Fed chief KaplanSystemic racism and high unemployment levels among black and Hispanic Americans create a drag on the U.S. economy, Dallas Federal Reserve President Robert Kaplan said on Sunday.
Weiterlesen »
US economic recovery slowed by 'uneven' health efforts: Fed president - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Weiterlesen »
Fed launches long-awaited Main Street lending programThe Federal Reserve said on Monday it had opened registration for lenders interested in participating in its Main Street Lending Program, launching arguably the most complex program undertaken yet by the U.S. central bank to help keep the backbone of the economy from buckling under the strains of the coronavirus pandemic.
Weiterlesen »
If Trump isn't re-elected as president, here's what may happen to corporate profitsLet the predictions begin for the stock market should President Trump not win re-election.
Weiterlesen »
Four trades linked to Aramco purchase of 70% stake in SABIC: market sourcesFour transactions involving 2.1 billion shares in Saudi Basic Industries Corp on the Saudi bourse on Sunday appeared to be linked to Saudi Aramco's planned purchase of a 70% stake in the petrochemicals company, two market sources said.
Weiterlesen »
Op-ed: U.S. and European tensions jeopardize 75 years of democracy, open markets and individual rightsTensions aren't new in transatlantic relations. The reason to act more decisively now is the historic moment, a new era of major power competition that will define the years ahead.
Weiterlesen »