The Fed's cannonball into bond markets drove $1 billion into the world's biggest credit ETF in a single day
Monday's inflows were the second-biggest in the ETF's history, according to Bloomberg, falling $30 billion shy of its 2016 single-day record.unveiled plans to purchase corporate bonds and credit ETFs
in an unprecedented step to aid the threatened market. A Secondary Market Corporate Credit Facility will allow the bank to purchase up to 10% of a company's outstanding bonds and ETFs"whose investment objective is to provide broad exposure to the market for U.S. investment grade corporate bonds," the bank said.
Limitless Treasury bill and mortgage-backed security purchases will further"support smooth market functioning and effective transmission of monetary policy," the Fed said in a . The Treasury Department will make an initial $10 billion investment in the facility through the Exchange Stabilization Fund, the central bank added.
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