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The Fed’s corporate bond buying is stoking bubble fears
The Federal Reserve’s move into the next phase of its corporate bond buying is generating renewed concerns over potential asset bubbles. In the latest leg of its effort to keep markets functioning, the central bank said last week it will expand its purchases of exchange-traded funds into individual issuance of company debt. While the initial announcement of the program provided a major lift to Wall Street, there now are worries that the risk-on sentiment could be getting carried away. “The Fed’s shock-and-awe campaign worked amazingly well,” Yardeni Research founder Ed Yardeni said in his daily market note ... (full story)