- No one knows how much or what exactly they're buying but they're limited by the size of the overall facility and are primarily going to stick to investment grade with a carve out for fallen angel and HY ETFs. Blackrock needs to provide the Fed with a list of ETFs they may buy and disclosure on that is uncertain.
- They are not required to publish their holdings but will provide an aggregate number alongside the rest of the H.4.1 numbers published on Thursday.
- The main and other part of this secondary market facility is secondary market corporate bonds. There is a certification process that issuers need to complete in order for the Fed to buy their bonds. Given the backlash on PPP, issuers are reluctant to register and especially reluctant given that secondary markets are more or less functioning.
- Most of the impact of this and other facilities announced has been seen in the announcement; not through actual purchases. This is true for the Fed and has been true for the BoJ and ECB.
- With the announce impact/implicit backstop, a (current) cap on ETF purchases, and a reluctance for issuers to certify, if markets function properly, you may not see very many purchases by the Fed under this facility at all.