Fed Is Seizing Control of the Entire U.S. Bond Market
(Worthy News) – The Federal Reserve is not leaving any corner of the U.S. bond market behind in this crisis.
There’s no other way to interpret the central bank’s sweeping measures announced Thursday, which together provide as much as $2.3 trillion in loans to support the economy. It will wade into the $3.9 trillion U.S. municipal-bond market to an unprecedented degree, can now purchase “fallen angel” bonds from companies that have recently lost their investment-grade ratings, and has expanded its Term Asset-Backed Securities Loan Facility to include top-rated commercial mortgage-backed securities and collateralized loan obligations. [ Source: Bloomberg (Read More…) ]
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