Federal Reserve buys Apple, Microsoft bonds despite tech boom

The Federal Reserve scooped up more bonds from multi-billion-dollar multi-national corporations last month, giving Wall Street a clandestine bailout.

According to new central bank data, The Fed bought corporate bonds from:

• Apple
  Microsoft
  Coca-Cola
  Walmart
  Walt Disney
  AT&T
  Comcast
  General Motors
  BMW

These were just the tip of the iceberg. The total value of holdings under the central bank’s secondary market credit facility climbed to a little more than $12 billion, more than $2.5 billion above the total for June.

In the world of ETFs, the Fed added $331 million worth of the iShares iBoxx High Yield Corporate Bond ETF (HYG), and $34.6 million of the VanEck Vectors Fallen Angel High Yield Bond fund (ANGL). HYG climbed six percent, while ANGL added two percent.

It only approved one loan through the municipal lending facility: $1.2 billion to Illinois.

Other data found that the Fed lent out $92 million to just 13 companies, including $50 million to Mount Airy, $12.3 million to Cherry Tree Dentals, and $5.5 million to Atlas Apex Roofing.