Excerpt from Bloomberg quoting DataTrek Research:
…. “U.S. banks account for almost 25% of LQD, with Goldman Sachs Group Inc. and Bank of America Corp. among the fund’s largest holdings. A desire to support the banking system likely factored into the Fed’s decision to buy corporate bonds and ETFs, according to DataTrek Research.
“Preserving operating liquidity in the U.S. banking system is certainly part of the Fed’s mandate, so buying investment-grade corporate bonds is not as outside the box as one might first think,” wrote co-founders Nicholas Colas and Jessica Rabe in a note Tuesday”….
Read the full article here on Bloomberg!