Fed will begin ETF purchases today

New York skyscrapers and flag

The Federal Reserve will take a step into uncharted territory today (May 12) as it begins purchases of exchange-traded funds (ETFs).

The move could initially see the Fed buy as much as $375 billion of corporate bond ETFs. Most of the purchases will consist of investment grade funds but some will be high-yield ETFs, the New York Fed says.

The purchasing facility, known as the Secondary Market Corporate Credit Facility, is the first of two tools created to ease the pressures in corporate funding

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account