The Fed bought debt in Warren Buffett's Berkshire Hathaway, Coca-Cola, Walmart, and McDonald's in its first spree of corporate bond-buying
The Federal Reserve spent $428 million buying debt in individual companies in the first wave of its corporate bond-buying programme, data released Sunday showed.
$6.8 billion worth of corporate debt ETFs were also bought by the Fed, with the central bank pouring $1.8 billion into a single ETF.The Fed bought $428 million worth of corporate bonds in its first foray into company debt as part of its response to the coronavirus, snapping up debt in household names like Coca-Cola, AT&T, and Berkshire Hathaway in the process.
The Fed made the largest purchases in bonds of United Health Group and AT&T, buying more than $16 million in each of the separate bonds. The Fed can also tap $25 billion in funding assistance from the Treasury Department as set aside by the CARES Act. The Fed's program, which was revealed on March 23, was a response to helping the economy remain afloat during the novel coronavirus pandemic and led to investors flocking back to stocks and corporate debt after the announcement.
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