The Fed Is Buying ETFs. Now What?
It's official. The Federal Reserve is now buying bond exchange-traded funds (ETFs).
Specifically, as part of the stimulus effort to counteract the effects of the coronavirus lockdowns, the Treasury gave the Fed $75 billion, which the Fed will in turn leverage 10-to-1 to buy $750 billion in corporate debt. Some of that figure will be in the form of corporate bond ETFs and even junk bond funds.
In a lot of ways,
