Fed Takes In Fallen Angels, Will Buy Junk Bonds, High Yield ETFs

Fed Takes In Fallen Angels, Will Buy Junk Bonds, High Yield ETFs

Are you concerned about "fallen angel" risk in the credit market? Put differently, are you someone who's spent the last month obsessing over the apparently imminent realization of the long-feared "BBB apocalypse"? Well, don't be - concerned, that is. Because the Fed will now buy high yield bonds. The updated term sheet for the secondary market corporate credit facility released in conjunction with a raft of new measures and enhancements to existing facilities on Thursday morning, includes n
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9 thoughts on “Fed Takes In Fallen Angels, Will Buy Junk Bonds, High Yield ETFs

  1. Certainly will forestall bankruptcies. Is this all on that 4 year timetable. I have been reading 6 or 8 hours a day and simply feel like a first semester college student cramming. Thanks for being an upperclassman Mr H.

    1. And so do state pension funds which usually by law cannot hold junk. There will be plenty for the Fed to buy and from sellers we cannot afford to become distressed. But don’t be surprised if it turns out that Jerome’s favorite opera is “The Barber of Seville.”

  2. Well, now, fallen angels have a home. They are welcome (with some stipulations) at the Fed’s house, onto which Jerome Powell is furiously building new wings to accommodate the increasingly diverse population of “refugee” assets he’s inclined to shelter and feed.” Ah that is a thing of beauty, a Heisenberg quote classic

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