The U.S. government has purchased millions of dollars in corporate bonds issued by entertainment giants like Fox Corp., Comcast, AT&T and others as part of a debt liquidity program spurred on by the novel coronavirus pandemic.
The Federal Reserve’s Secondary Market Corporate Credit Facility is designed to provide liquidity to the corporate debt market, with the central bank set to purchase billions of dollars worth of investment-grade debt from companies on the secondary market over the coming months.
The Fed began buying electronically traded funds (ETFs) focused on corporate debt in May, but just began buying individual bonds on June 16.