SMCCF’s ETF bond buying spree examined

US Federal Reserve

For the first time in its 107-year history, on 23 March this year, the US’s Federal Reserve announced that through its Secondary Market Corporate Credit Facility (SMCCF), it would start buying corporate bond ETFs, a process that actually commenced on 12 May. 

In a comment on the ETF buying programme, Deborah Fuhr, managing partner of ETF data providers ETFGI notes that the Fed is not the first central bank to purchase ETFs as part of a stimulus package.

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Beverly Chandler
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