Three numbers to start your day:
In 2020, the Federal Reserve’s Portfolio of Corporate Bonds and ETFs Rose to $14 Billion
That is according to its latest presentation to Congress. That is up from $13.6 billion at the end of November. While the Fed has stopped buying ETFs, it has kept buying individual company bonds on the secondary market, with a total face value of $5.2 billion.
The Fed has been buying bonds of companies that are rated investment grade, as well as bonds of companies that were rated investment grade before the pandemic. About 41% of the bonds are rated A or higher, while just over half are rated BBB. About 13% of the corporate bond ETFs by market value are classified as high yield.