No one would deny that the Federal Reserve’s actions as America was on the brink of a liquidity induced collapse helped avert a crisis, but some investors were puzzled as the Fed turned the liquidity dial to 11 and began purchasing bond ETFs for its Secondary Market Corporate Credit Facility (SMCCF) in May. Since then, they have invested nearly $8 billion in 16 ETFs with $940 million in high yield (HY) and $7 billion in investment grade (IG) funds through the end of June.
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