Investing

The Fed buying ETF's

  • Last Updated:
  • May 12th, 2020 2:08 pm
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3 replies
Deal Addict
Sep 2, 2009
1444 posts
1109 upvotes
Ottawa
At least right now, the important part is "corporate debt" ETFs.
Deal Addict
User avatar
Dec 24, 2007
1457 posts
1678 upvotes
BC
Bubblegum86 wrote: Just read this: https://www.bloomberg.com/news/articles ... on-tuesday

What do you guys think? Will the start buying other index ETF's down the road too? Makes me worry about my early retirement...
No, they are not going to support shareholders. This is all about keeping credit markets functioning for corporations as certain ETFs hold short-term corporate debt and unless someone is willing to lend to corporations, companies will run out of money.
Deal Addict
Sep 19, 2009
2067 posts
862 upvotes
Toronto
WetCoastGuy wrote: No, they are not going to support shareholders. This is all about keeping credit markets functioning for corporations as certain ETFs hold short-term corporate debt and unless someone is willing to lend to corporations, companies will run out of money.
This is a bailout for debt holders, no different than the infamous Troubled Asset Relief Program (TARP) program.

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