Fed corporate bond purchases slow in June (NASDAQ: PEP)


The Fed continues to slow purchases of corporate bonds, buying only $ 1.3 billion in late June.

The secondary market credit facility was announced in late March to guarantee the flow of credit to the US financial markets.

The central bank bought bonds issued by several hundred large companies, including PepsiCo (PEP + 1,3%), AT&T (T + 2,0%) et Berkshire Hathaway (BRK.B + 2,3%), (BRK.A + 2,1%), reports the Associated Press.

Combined with purchases earlier this month, the Fed purchased nearly $ 1.8 billion in corporate debt in June.

He bought bonds from various companies to mimic a broad market index, in order to avoid favoring a single industry.

Fed purchases are well below the program’s initial ceiling of $ 750 billion.

Earlier this week, Daleep Sing, executive vice president of the New York Fed, said the central bank could continue shopping or stop entirely if market conditions improved.

“It would not be a signal that the doors (of the bond purchase program) have been closed, but rather that the markets are functioning well,” said Singh.

Previously: the Fed becomes the third shareholder of LQD (June 29)


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