" Eligible Issuers for Individual Corporate Bonds... An issuer that was rated at least BBB-/Baa3 as of March 22, 2020, but was subsequently downgraded, must be rated at least BB-/Ba3 as of the date on which the Facility makes a purchase"
Whatever the Fed buys, sell, because that means that they are trying to prop up a market that is doomed anyhow. Same thing, for assets they sell. Remember in 2001 when they were dumping gold at $250/oz.
> means that they are trying to prop up a market that is doomed anyhow.
Chiefly, they are trying to prop up banks who use these failing bonds as part of their fractional reserve. After all, when the "reserve" becomes impaired, the bank is bankrupt.
But why should you be concerned? If you hold the currency, it is becoming depreciated by paying for a failed / failing asset at above market prices.
A good currency would be backed by gold. Now we are backing them with worthless confetti.
> Remember in 2001 when they were dumping gold at $250/oz.
The gold dumping of 2001, otherwise known as the "Brown Bottom" named after Gordon Brown, was actually a clandestine bailout of bullion banks who had sold forward hundreds of tons of gold. There was no way for them to buy that gold back and exit their positions, so the gold sales at 25 year lows were just another form of banker bailout, at a huge price to the taxpayer.