Fed moves to ensure companies can tap bond market for funds
Last updated 6/15/2020 at 7:26pm
AP Economics Writer
WASHINGTON (AP) — The Federal Reserve said Monday that it will begin purchasing corporate bonds as part of a previously announced plan to ensure companies can borrow through the bond market during the pandemic.
The program will purchase existing bonds on the open market, as opposed to newly issued debt. The central bank said will seek to build a "broad and diversified" portfolio that will mimic a bond-market index. The bonds will have to be from highly rated, investment-grade companies, or ones that fit that description before the viral outbreak str...