Brian Chappatta, Columnist

Will the Fed’s Bond Buying Be as Powerful as the Idea?

The central bank opened up the corporate-debt markets by announcing its backstop, but the rally is starting to fizzle.

April 29, 2020 at 9:00 AM UTC

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

Words could end up speaking louder than actions.
Photographer: Eric Baradat/AFP/Getty Images

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Just about every investor has heard the adage “buy the rumor, sell the news.” Many have probably traded accordingly.

In the bond markets, it’s starting to look as if the strategy was to buy when the Federal Reserve revealed its plans to prop up companies’ debt, then pare back as the central bank prepares to take action.