BlackRock To Work With Fed In Purchasing Bonds
The Fed had recently announced that it would purchase tens of billions worth of bonds in order to increase the liquidity in the American economy. This major effort towards curbing the economic distress caused by the coronavirus outbreak will be spearheaded by BlackRock.
BlackRock is the world’s largest asset and money manager, overlooking $7 trillion in capital and assets. As a result, BlackRock is uniquely positioned to carry out billions in bond purchases.
However, because BlackRock invests across a wide variety of industries, there is sure to be increased scrutiny on which bonds it decides to buy, with the hopes of stopping any self-serving decisions. BlackRock will not be permitted to invest in more than 20% total of an exchange traded fund, as a measure to limit any potential self-serving investment moves.
Additionally, BlackRock will overlook the bond purchasing programs. One program will seek to purchase new bonds from American companies and the second program will focus on purchasing already existing bonds from American companies.