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The Fed reveals which companies make its corporate-bonds shopping list


<b>The Fed reveals which companies make its corporate-bonds shopping list</b>The list is a lengthy one, counting roughly 750 companies, including Apple, Walmart and ExxonMobil.
The US Federal Reserve announced in March that it would, for the first time in its history, purchase corporate bonds as the intensifying viral outbreak caused panicked investors to dump most types of securities in a rush to hold cash. That pushed up a range of interest rates and made it nearly impossible for companies to borrow more by issuing new bonds. By announcing the program, the Fed was able to boost confidence in corporate bonds. Investors began buying bonds again and large corporations resumed issuing large amounts of new bonds. Critics of the measure worried that it would favour specific companies or a sector. The Fed responded by assuring it would follow a broad market index approach and purchase bonds from a wide range of companies, like consumer products, utilities and energy companies. Hopefully, these companies will use the bailout, which was made with tax payer money, to avoid laying off workers, but companies are not legally required to keep all their employees.

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