Fed Is Among the Biggest Winners From Its Foray Into Credit ETFs
The U.S. central bank accumulated roughly $8.6 billion worth of bond exchange-traded funds in 2020 as it worked to backstop markets amid a quickly descending pandemic.
Katie Greifeld | Jun 04, 2021
(Bloomberg) -- Staving off the collapse of the financial system came with an added bonus for the Federal Reserve: A tidy profit.
The U.S. central bank accumulated roughly $8.6 billion worth of bond exchange-traded funds in 2020 as it worked to backstop markets amid a quickly descending pandemic. Now, as the Fed prepares to unwind its holdings on June 7, it’s sitting on a gain of $140 million from the price appreciation alone, according to Citigroup Inc.