Broken Pie Chart

Fed Buying Which ETFs and Bonds? – How do TIPS Treasury Inflation Protected Bonds Work?


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The Federal Reserve through their SMCCF or Secondary Market Corporate Credit Facility have been buying bond etfs and individual bonds. What have they been buying and how much? Where to find the list of ETFs and Bonds purchased by the Fed. Plus, TIPS or Treasury Inflation Protected Securities (Bonds). How do they work? How do they hedge against inflation? And How are TIPS bonds adjusted along with inflation.

Where to find list of ETFs and bonds the Federal Reserve is buying?

What is the Federal Reserve SMCCF or Secondary Market Corporate Credit Facility?

The Fed has purchased about $6.8 Billion worth of corporate bond etfs through June 18th

The Federal Reserve also has been buying junk bond etfs

How much and what individual bonds of corporations has the Fed purchased thus far?

How much has the Fed said it will purchase of corporate bonds?

What are TIPS bonds (Treasury Inflation Protected Securities)?

What year did the US Treasury first offer TIPS bonds?

When inflation via the CPI increases, how are TIPS bonds adjusted higher?

How does deflation cause an adjustment lower in TIPS bonds?

Do the coupon payments on TIPS bonds increase along with the principal amounts?

What is breakeven inflation rate?

What does the breakeven inflation rate tell us about cash flows of TIPS vs US Treasuries?

Where to download excel file with Federal Reserve ETF and Bond holdings?

How do TIPS bonds help investors potentially protect purchasing power and leverage inflation?

Mentioned in this Episode:

Download Federal Reserve holdings and trades of ETFs and Bonds (SMCCF Transaction-specific disclosures June 28th, 2020) https://www.federalreserve.gov/monetarypolicy/smccf.htm

10 Year Breakeven Inflation Rate https://fred.stlouisfed.org/series/T10YIE

Derek article showing current Fed holdings of ETFs and bonds https://zegafinancial.com/blog/really-dont-fight-the-fed-federal-reserve-updated-holdings-of-bonds-and-etfs-6182020

Jeremy Siegel talks inflation with Barry Ritholtz https://podcasts.apple.com/us/podcast/jeremy-siegel-on-the-stock-market-under-covid-19-podcast/id730188152?i=1000478723627

Free Chapter from my book Broken Pie Chart https://www.book2look.com/book/YcqUhbCrtN

Book Jeremy Seigel Stocks for the Long Run https://amzn.to/3el67tO

Derek Moore's book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr

Contact Derek www.razorwealth.com

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Broken Pie ChartBy Derek Moore

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