Here Are All The Bond ETFs That Will Be Bought By The Federal Reserve

Now that the Fed has effectively nationalized the bond market (don’t worry, stocks are next, it’s just a matter of time) which all the way down through junk bond issues and CLO tranches will no longer reflect the underlying fundamentals but merely what mood the Fed is in on any given day, and where it tells the industrious financial wizards of Blackrock, Inc. to close the market. 

The only thing that matters for Wall Street traders is how to front-run the Fed, so to make sure that the Fed’s helicopter paradrop is utilized by everyone in the most efficient way, here is a breakdown of everything the Fed will be buying to make sure the bond prices of fallen angels – firms which spent trillions on stock buybacks instead of even considering a downside case – trade near par even as the underlying cash flows drop down to near zero.  

The full list of US-listed investment grade and HY/junk bond ETFs that are eligible for Fed purchases, and which will almost certainly outperform non-Fed backstopped assets, is the following.