Fed to buy corporates; but how?

摘要

US high-grade bond supply took off in record fashion last week after the US Federal Reserve announced an unprecedented programme to buy corporate bonds. In a term sheet the Fed outlined two programmes, one for buying secondary bonds and ETFs; the other to buy high-grade corporate bonds with maturities of four years or less in the primary market. The secondary credit facility is fairly straightforward and was the main motivator for the increase in investor demand last week.