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Fed nibbles at corporate bonds with no takers for direct loans
The Federal Reserve continued to buy broad exposure to the corporate bond market with purchases of individual issues and exchange traded funds to fill out a self-constructed index for its Secondary Market Corporate Credit Facility, data for last month released Friday by the central bank showed. No borrowers have taken advantage yet of its direct credit facility which opened at the end of June, according to the data, which are updated every 30 days. The corporate credit program remains small, with just US$10.7 billion in purchases of bonds and exchange-traded funds by the Fed through the latest week. The Fed’s trade ... (full story)