Clear things up: Is the FED buying Equities?

Atikon said:
Have you read anything about them buying Stock ETFs? Because from what I could gather so far it only applies to Bond ETFs (Investment Grade and Junk) as of now.
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It is more of a political and a psychological ploy.

The FED and Washington are doing an economic triage. The bond market is much bigger and much more important. They have more than enough to worry about.
 
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1957may10 said:
Me too zero hedge is not!
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Can you make your own analysis I do for 40 years on my market experience ...
Do you trust media sources I do not..
Can you read between the lines I do...
What are you looking maybe I can give you some hints ...
 
Atikon said:
I see a lot of doom and gloom ppl post about how the FED is buying up the S&P and I wanted to understand exactly what the FED is buying and what she is lending against.

The FEDs MO right now is prevent defaults. So they won't only lend to their Primary Lenders, but to Financial Institutions, Hedge Funds, Money Market Funds and Corporations directly.

In this Statement right here: https://www.federalreserve.gov/news...3_YuOUwb_ve3tvy-HndQba0uk8csDiew-O60975vQHHIU

The Federal Reserve Board gives the FED Permission to lend to Primary Lenders against "a broad range of Equities". As far as I know, the FED is lending against Bond ETFs as of right now. I haven't read anything being confirmed that the FED is lending against e.g. Amazon Stock.

As far as I understand secondary lenders can only get Liquidity by putting up ABS, Treasuries and Bond ETFs:
https://www.federalreserve.gov/monetarypolicy/smccf.htm

Corporate Borrowers can go straight to the FED (if they are Investent Grade) and borrow funds: https://www.federalreserve.gov/monetarypolicy/pmccf.htm

Furthermore the FED will buy Bonds and short Term Debt straight from the Exchange to keep Interest Rates low, by buying up the Bonds at a high price: https://www.federalreserve.gov/monetarypolicy/smccf.htm therefore helping Corporates indirectly managing financial risk.

I have yet to find an article where it says the FED is lending against stock. Maybe the ppl who say the FED is buying the S&P over the past few weeks can point me to a statement or article
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Atikon said:
I see a lot of doom and gloom ppl post about how the FED is buying up the S&P and I wanted to understand exactly what the FED is buying and what she is lending against.

The FEDs MO right now is prevent defaults. So they won't only lend to their Primary Lenders, but to Financial Institutions, Hedge Funds, Money Market Funds and Corporations directly.

In this Statement right here: https://www.federalreserve.gov/news...3_YuOUwb_ve3tvy-HndQba0uk8csDiew-O60975vQHHIU

The Federal Reserve Board gives the FED Permission to lend to Primary Lenders against "a broad range of Equities". As far as I know, the FED is lending against Bond ETFs as of right now. I haven't read anything being confirmed that the FED is lending against e.g. Amazon Stock.

As far as I understand secondary lenders can only get Liquidity by putting up ABS, Treasuries and Bond ETFs:
https://www.federalreserve.gov/monetarypolicy/smccf.htm

Corporate Borrowers can go straight to the FED (if they are Investent Grade) and borrow funds: https://www.federalreserve.gov/monetarypolicy/pmccf.htm

Furthermore the FED will buy Bonds and short Term Debt straight from the Exchange to keep Interest Rates low, by buying up the Bonds at a high price: https://www.federalreserve.gov/monetarypolicy/smccf.htm therefore helping Corporates indirectly managing financial risk.

I have yet to find an article where it says the FED is lending against stock. Maybe the ppl who say the FED is buying the S&P over the past few weeks can point me to a statement or article
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Let me make it straight. FED will not buy stocks directly period.
If it hypothetically it will a lot bag crap came up.
Never ever
Guess I answer to your question...
It is high political issue!
Well they will help boing, airlines but land them money ... that is it...,
 
xandman said:
It'ous abt 1/10th of the investment grade markets which it is meant to support.

They will focus on <4 or 5 year maturities. The rest go to the investor class.
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Do you think it is good when government involved?
 
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