In detail: The Fed's first wave of ETF purchases

Over half bought from BlackRock

The Federal Reserve has published its first disclosures pertaining to the Secondary Market Corporate Credit Facility (SMCCF), which it established on 23 March as part of its attempt to ease the economic and financial consequences of the coronavirus pandemic.

This decision saw the bank appoint BlackRock, without formal tender, to manage its purchase of bonds, mortgage-backed securities and ETFs in a move reminiscent of the Global Financial Crisis, during which the asset manager was brought on board to manage assets from Bear Stearns and American International Group. BlackRock to buy bonds and ETFs for the Fed The first monthly report has revealed that, as of 19 May 2020, the Fed has purchased $1.3bn of ETFs from five different fund houses: iShares, State Street Global Advisors, VanEck, Vanguard and Xtrackers. Questions were raised when ...