Since May 2020, the Federal Reserve has bought $8.4 billion worth of exchange-traded bond funds.
The Fed’s purchases have stopped this past month. The Fed is up about 2.5 percent in their positions or about $230 million.
The Federal Reserve wasn’t trying to make a profit, they were trying to prop up and support liquidity and the bond market. The investors that made the most money were private ones. Even though the Fed announced that they would be buying bonds in March 2020, they didn’t actually make their first purchase until May 2020 and so that gave investors plenty of time to front-run the Fed. Those are the investors that really make a lot of money.
Since May, the U.S. Federal Reserve has bought $8.4 billion of exchange traded funds. But has the world’s most important central bank done well from its purchases and what about the investors who tried to get ahead of it? Bloomberg Intelligence’s Athanasios Psarofagis has more on “Bloomberg ETF IQ Europe.”