Federal Reserve Notes Are Now “Backed†by Junk Bonds
Wild price action and unprecedented interventions once again characterized this holiday-shortened trading week. Oil prices whipsawed low.....»»
Market Extra: Fed should ‘switch’ up its playbook and buy more Treasurys, fewer mortgage bonds, urge analysts
As the economy reopens, the Federal Reserve should consider tweaking its $120 billion monthly asset purchase program to allow for more Treasury purchases and fewer government-backed mortgage bonds, say analysts......»»
No, the Fed can’t save the junk bond market, Goldman cautions
Exchange-traded funds offering exposures to junk bonds may lack the full Federal Reserve safety-net investors are betting on, warn analysts at Goldman Sachs......»»
Mohamed El-Erian says the Fed supporting junk bonds could eat away at "what makes America special" and create a new generation of "zombie companies"
Reuters/Lucy Nicholson The economist Mohamed El-Erian says the Federal Reserve has raised the prospect of creating a generation of "zombie companies" by buying junk bonds during t.....»»
Mohamed El-Erian warns the Fed supporting junk bonds could eat away at "what makes America special," and create a new generation of "zombie companies"
Reuters/Lucy Nicholson Famed economist Mohamed El-Erian warned that the Federal Reserve has raised the prospect of creating a generation of "zombie companies" by buying junk bonds during the pandemic.....»»
The Tell: Wave of corporate defaults could reach more than 20%, despite Fed’s foray into buying junk bonds, warn analysts
Defaults already are climbing as speculative-grade (junk-rated) companies buckle under their debts, even as the Federal Reserve aims a near $750 billion fire hose on the corporate debt markets during the pandemic......»»
The Tell: Fed may nibble at junk bond market, says UBS
The Federal Reserve could dip its toes in the more than $1.3 trillion market for sub investment-grade corporate bonds, or junk debt, according to credit analysts at UBS......»»
Mortgage rates likely to fall again after the Fed"s latest dramatic response to coronavirus
The Federal Reserve announced it will begin buying $200 billion of mortgage-backed bonds, a move that will stabilize and likely lower mortgage rates, which moved sharply higher last week......»»
Market Extra: Disappointing jobs report gives lift to junk bonds
The U.S. junk bond market is making significant gains this week amid surging expectations that the Federal Reserve will cut rates this year......»»
Europe Markets: Yield on U.S. 10-year surges, pressuring Nasdaq-100 as European stocks edge up
European stocks rose on Thursday in the first opportunity to react to the latest Federal Reserve decision, with the big story being the selloff in bonds the central bank did nothing to quell......»»
Europe Markets: European stocks rise after Fed decision as yield on U.S. 10-year surges
European stocks rose on Thursday in the first opportunity to react to the latest Federal Reserve decision, with the big story being the sell-off in bonds the central bank did nothing to quell......»»
The Tell: Here’s how the stock market and bond yields have responded to the last 17 Fed decisions
It's all eyes on the Federal Reserve for traders and investors Wednesday. Deutsche Bank broke down how stocks, bonds and the dollar have reacted to the past 17 Fed decisions......»»
Stocks drop as virus recovery begins to look distant
Stock markets fell and bonds were in demand on Thursday as worries grew about a second wave of coronavirus infections and a dour assessment from the head of the U.S. Federal Reserve dashed hopes for a quick economic recovery......»»
The Fed Makes History Buying $750B In Corporate Bonds
The Federal Reserve is buying corporate bonds for the first time in an attempt to curb the economic fallout of the coronavirus. read more.....»»
Apple borrows on the cheap to fund buybacks, dividends
Apple Inc on Monday capitalized on the Federal Reserve's emergency measures in response to the coronavirus outbreak to issue its cheapest bonds in years, making it the latest blue-chip company to do so to fund stock buybacks and dividends......»»
Largest corporate debt ETF rises as Fed affirms bond-buying program
The biggest exchange-traded fund with exposure to investment-grade corporate debt was higher in midday trading after the Federal Reserve confirmed it would soon start to buy corporate bonds, and shares of ETFs that track them, to help support busi.....»»
Warren Buffett backed away from potential mega-deals after the Fed announced market-saving stimulus efforts
Alex Wong / Getty Images Warren Buffett considered making a deal as the coronavirus rocked the US economy, but the Federal Reserve's unprecedented stimulus efforts erased any appealing opportunities. The legendary investor stepped in with billions of dol.....»»
Goldman caught Fed-fueled rebound with bet on mortgage bonds
Goldman Sachs Group Inc. bought up mortgage bonds during a wave of panic selling last month, a bet that’s almost certainly made money since the Federal Reserve unveiled massive stimulus turning a... To view the full story, click the title link......»»
The Tell: Fed’s foray into buying junk-rated corporate debt won’t stop wave of defaults that could reach 21%, analysts warn
Defaults already are climbing as speculative-grade (junk-rated) companies buckle under their debts, even as the Federal Reserve aims a near $750 billion fire hose on the corporate debt markets during the pandemic......»»
How the Federal Reserve’s Junk Bond Purchases Will Actually Work
Unprecedented times call for unprecedented actions. The Federal Reserve, Treasury and even politicians in America have managed to forge together bailout and rescue packages to fight the COVID-19........»»
Market Extra: Fed’s souped-up lending programs extends aid to ‘junk’ bonds
In unprecedented action, the Federal Reserve said it would extend aid to sub-investment grade companies, or “junk’-rated issuers......»»