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serving the Public interest of Transparency in Debt Capital Markets
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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