Either this is wrong, or the Fed's actions are illegal
Only CARES funds *directly from Treasury are available for 4003(b)(4)(B) secondary purchases. Beyond that, 4003(c)(3)(B) requires 13(3) collateral. Bonds aren't their own collateral.t.co/1Po6hOjPpk@JeffCoxCNBCcom pic.twitter.com/udpG0kqN4C
— John P. Hussman (@hussmanjp) June 15, 2020
BUYING CORPORATE BONDS WHILE STOCKS ARE
NEAR ALL TIME HIGHS
JUST PROVES THAT THE FED
IS DRUNK WITH POWER
RUN BY CLUELESS SOCIALISTS
— Reminiscences of an American Capitalist (@4Awesometweet) June 15, 2020
Unelected officials at the Federal Reserve are now picking winners and losers in the corporate bond market. pic.twitter.com/RQKLnLgYwO
— Hedgeye (@Hedgeye) June 15, 2020
The SPV is called the Secondary Market Corporate Credit Facility (SMCCF)
It is funded by $75B from the Cares Act … taxpayers.
Blackrock is doing all the trades.
It was announced on March 22, and started today, a week shy of three months later.
— Jim Bianco (@biancoresearch) June 15, 2020