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.
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bloomberg.com/news/articles/…
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.
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bloomberg.com/news/articles/…
According to the Fed Reserve Act the Fed is only allowed to buy stuff that is guaranteed by the Fed Government (Tsys, Agys, MBS). So they are not allowed to buy corporate bonds.
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Instead the Treasury is buying them via the SPV and $75B of taxpayer money. The Fed is the financier (banker) and BlackRock is doing the transactions.
As long as the Treasury is willing to use taxpayer money is this fashion, nothing stops them from buying equities.
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As long as the Treasury is willing to use taxpayer money is this fashion, nothing stops them from buying equities.
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Remember equities are ownership.
So, if the Fed and the Treasury create another SPV to buy equities, and Biden wins, nothing is to stop the Biden Treasury from appointing AOC to vote the proxies and use this clout to demand/force the Green New Deal.
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So, if the Fed and the Treasury create another SPV to buy equities, and Biden wins, nothing is to stop the Biden Treasury from appointing AOC to vote the proxies and use this clout to demand/force the Green New Deal.
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