The Federal Reserve’s bond-buying program is yet another way the government props up an industry that experts say is in decline


Olde Hornet

Well-Known Member
The Fed is destroying the future to get agent orange elected for a second term.
:nono2:
:nono2:
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The Fed’s Coronavirus Spending On Fossil Fuel Could Dig A $19 Billion Money Pit

https://www.huffpost.com/entry/fede...us-oil-fossil-fuel_n_5ef0d000c5b694977f2a8219

The Federal Reserve’s bond-buying program is yet another way the government props up an industry that experts say is in decline.

As the coronavirus pandemic tanked U.S. markets in March, the Federal Reserve started lending directly to companies across a wide range of business sectors by buying up corporate bonds.

The $250 billion that Congress authorized the central bank to inject into the bond market helped many otherwise healthy balance sheets weather the sudden financial storm. Of the $1.3 billion in funds whose recipients have been disclosed so far, roughly 8% went to fossil fuel-related bonds ― even though the oil, gas and coal sector comprises just 3% of the S&P Composite 1500 stock index.

But the fossil fuel sector’s credit rating was spiraling downward well before COVID-19. Of that nearly $100 million known to be directed to the industry, $22 million went to prop up bonds with such low credit ratings they are considered non-investment grade ― “junk” bonds. And fossil fuel bonds in general look likely to become riskier in the future.
 
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