Home / Business / Fed’s purchase of corporate bonds slows in June (NASDAQ: PEP)

Fed’s purchase of corporate bonds slows in June (NASDAQ: PEP)



The Fed continues to curb its corporate bond purchases, buying only $ 1.3 billion at the end of June.

The Secondary Market Corporate Credit Facility was announced at the end of March to secure credit flow in the US financial markets.

The central bank bought bonds issued by several hundred large companies, including PepsiCo (PEP) + 1.3%), AT&T (T + 2.0%) and Berkshire Hathaway (BRK.B + 2.3%), (BRK.A + 2.1%), reports the Associated Press.

Combined with purchases earlier this month, the Fed bought nearly $ 1

.8 billion in corporate debt in June.

It has purchased bonds from a number of companies to mimic a broad market index, to avoid benefiting any industry.

The Fed’s purchases are well below the program’s original $ 750B cap.

Earlier this week, Daleep Sing, CEO of the New York Fed, said the central bank could buy further or completely stop if market conditions improved.

“This would not be a signal that the doors (bond buying program) were closed, but rather that the markets are functioning well,” Singh said.

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