Yale School of Management

Posts by Emergency Liquidity

Despite Stated Exclusion, the Fed Is Buying Bank Debt

September 21, 2020
YPFS
The Federal Reserve has said it won’t directly buy bonds issued by banks as part of its COVID financial rescue facilities. But a close review of its holdings reveals that by buying exchange traded funds, it has indirectly bought $2 billion of bank bonds—over 15% of its total corporate bond holdings. Continue reading “Despite Stated Exclusion, the Fed Is Buying Bank Debt”