Fed Becomes No. 3 Holder of World’s Biggest Corporate-Bond ETF
- It has purchased over 13 million shares of LQD through June 16
- Central bank is likely to slow the pace of ETF buying: Tchir
The Marriner S. Eccles Federal Reserve building stands in Washington, D.C.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The Federal Reserve became one of the top holders in some of the world’s largest credit ETFs less than two months after stepping into the market.
The central bank owns more than 13 million shares of the $54 billion iShares iBoxx $ Investment Grade Corporate Bond exchange-traded fund (LQD) as of June 16, making it the third-largest holder, according to data compiled by Bloomberg. Only Bank of America Corp. and Fisher Asset Management -- both of whom have yet to file their second-quarter holdings -- own more shares than the U.S. central bank.