Excerpt from Barron’s quoting DataTrek Research:
…. “DataTrek believes that ETF purchases may be a way for the Fed to support the banks. Nearly 26% of the iShares iBoxx $ Investment Grade Corporate Bond ETF is bank debt, notes DataTrek. They also give the Fed the opportunity to own longer-dated bonds. When it buys corporate bonds in secondary trading or directly from companies, it will accept only debt maturing in less than four years. But the weighted average maturity of the iShares iBoxx ETF’s benchmark is about 13 years”….
Read the full article here on Barron’s!