- The Federal Reserve plans to buy debt from nearly 800 companies, however, the top 10 beneficiaries are slated to represent 15% of central bank purchases.
- The Secondary Market Corporate Credit Mechanism shifted from credit ETFs to the purchase of individual bonds in mid-June and aims to track the broad corporate debt market.
- Here are the 10 companies with the highest planned weight, according to the comprehensive market index released by the Fed.
- Visit the Business Insider home page for more stories.
The purchase of Federal Reserve emergency bonds is slated to help tech giants, automakers, and communications companies.
The central bank announced in late March that it would start buying corporate debt to boost market liquidity and elevate companies through the coronavirus pandemic. The Secondary Market Corporate Credit Mechanism began by purchasing exchange-traded funds for corporate debt on May 12 and expanded the program in mid-June to include individual bond purchases.
In an effort to closely monitor the corporate debt market, the Federal Reserve plans to build a bond index through its SMCCF purchases. The planned buying activity is already seeking to imitate market consolidation. Of the nearly 800 companies the Fed plans to buy bonds from, the top 10 beneficiaries will make up about 15% of purchases.
Here are the top 10 beneficiaries of the planned purchase, according to the Comprehensive Market Index released by the Fed.
Read more:We spoke to 3 financial experts who said they do 4 these trades right now to get ahead of the amazing gains when the earnings season begins next month.
10. BMW
Daniel Schnettler / Picture Alliance / Getty Images
Weight index: 1.25%
9. Comcast
Cindy Ord / Getty Images
Weight index: 1.32%
8. Ford
Sean Gallup / Getty Images
Weight index: 1.34%
7. General Electric
Mike Simons / Getty Images
Weight index: 1.48%
5 (tie). Apple
Spencer Platt / Getty Images
Weight index: 1.60%
4. AT&T
Rob Kim / Getty Images
Weight index: 1.71%
3. Daimler
REUTERS / Laszlo Balogh
Weight index: 1.72%
1 (tie). Volkswagen
Volkswagen
Weight index: 1.74%
.
