(Bloomberg) -- The Federal Reserve is close to standing up two corporate lending programs that could buy up to $750 billion in debt and exchange-traded funds under its emergency coronavirus actions.
The New York Fed announced on its website Monday that it expects to begin purchasing shares of eligible ETFs in early May through its Secondary Market Corporate Credit Facility. Lending through the Fed’s Primary- and secondary-market corporate credit facilities via purchases of corporate bonds will begin soon thereafter, it said. ETFs are included in the secondary facility and the program’s announcement in March had a major impact on that market.
“Additional details on timing will be made available as those dates approach,” the New York Fed said.
The corporate facilities are among nine emergency lending programs announced by the Fed to help shelter the U.S. economy from the pandemic and keep credit flowing. The move was a dramatic escalation of the central bank’s intervention, stepping into the corporate debt markets for the first time since the 1950s and including some sub-investment grade debt in the ETF purchases.
REGARDLESS OF WHAT THEY CONTAIN - ETF'S ARE STOCKS. THE FED IS BUYING STOCK.
THE BROAD MARKET WAS DOWN 200 POINTS WHEN THE FED MADE THEIR ANNOUNCEMENT. THE DOW ENDED UP 50.
THE TALKING HEADS ALL SAID THE MARKET WAS LOOKING OUT TO BETTER DAYS
HOW CAN THERE BE BETTER DAYS WHEN ALL FINANCIAL ASSETS WOULD COLLAPSE WITHOUT BASKSTOPPING BY THE FED?
HOW LONG CAN THE FED BE THE BUYER OF LAST RESORT FOR ALL FINANCIAL INSTRUMENTS WITHOUT CREATING MASSIVE DESTRUCTION OF VALUE OF THE INSTRUMENT THEY MAGICALLY PRODUCE TO BUY THE INSTRUMENTS - NAMELY THE US DOLLAR?
GOT GOLD?
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