New York Fed Says It Will Begin Buying ETFs in ‘Early May’
- Corporate debt purchases to begin ‘soon thereafter,’ Fed says
- Fed puts limits on eligible ETF purchases to avoid overpaying
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The Federal Reserve is close to standing up two corporate lending programs that could buy up to $750 billion in debt and exchange-traded funds under its emergency coronavirus actions.
The New York Fed announced on its website Monday that it expects to begin purchasing shares of eligible ETFs in early May through its Secondary Market Corporate Credit Facility. Lending through the Fed’s Primary- and secondary-market corporate credit facilities via purchases of corporate bonds will begin soon thereafter, it said. ETFs are included in the secondary facility and the program’s announcement in March had a major impact on that market.