Apple, AT&T, Jack Daniel's: fed issues details on bond buys
Federal Reserve releases stress test results
FOX Business’ Edward Lawrence says the Federal Reserve will suspend stock buybacks for banks and cap the dividends banks can give in the third quarter to the second quarter.
The Federal Reserve on Sunday released a list of roughly 750 companies, including Apple, Walmart and ExxonMobil, whose corporate bonds it will purchase in the coming months in an effort to keep borrowing costs low and smooth the flow of credit.
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The central bank also said it has, so far, purchased nearly $429 million in corporate bonds from 86 of those companies, including AT&T, Walgreen's, Microsoft, Pfizer and Marathon Petroleum.
WHAT IS A CORPORATE BOND?
The Fed announced in March that it would, for the first time in its history, purchase corporate bonds as the intensifying viral outbreak caused panicked investors to dump most types of securities in a rush to hold cash. That pushed up a range of interest rates and made it nearly impossible for companies to borrow more by issuing new bonds.
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