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The Collaborative Market Data Network
Serving Transparency in Capital Markets
The Collaborative
Market Data Network

WHY IS THE FED SELLING IT’S HOLDINGS OF CORPORATES?

Post Date: 04 June 2021

The Federal Reserve built up a portfolio of corporates in response to Covid and early stresses in credit markets. They now plan to do an unwind. Not a taper, but outright selling. This was unexpected. It is not a signal on wider Treasury tapering, but it does push in that direction. It also adds some bonds back into a stressed money market that needs them badly

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