Fed’s New Facility Will Buy Junk Bonds With 7-1 Leverage

by Mike ‘Mish’ Shedlock
The Street

Today, the Fed announced the terms of its new bond facility. In reality it’s nothing but an asset price support mechanism.

Moral Hazard

With highly questionable legality on top of a 100% certain moral hazard, here are the details of the Fed’s new Secondary Market Corporate Credit Facility

Credit Facility Terms

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