- The Secondary Market Corporate Credit Facility pivoted from credit ETFs to individual bond purchases in mid-June and aims to track the broad corporate debt market.
- Here are the 10 firms with the largest planned weighting, according to the Fed's published Broad Market Index .
- Visit the Business Insider homepage for more stories .
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Here are the 10 companies set to benefit the most from the Fed's debt purchases
The Federal Reserve plans to buy debt from nearly 800 companies, yet the top 10 beneficiaries are slated to make up 15% of the central bank's purchases.
Federal Reserve
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The Federal Reserve's emergency bond-buying is slated to aid tech giants, automakers, and communications firms the most.
The central bank announced in late March it would begin buying corporate debt to boost market liquidity and lift firms through the coronavirus pandemic. The Secondary Market Corporate Credit Facility began by purchasing corporate-debt exchange-traded funds on May 12 and expanded the program in mid-June to include individual bond purchases.
In an effort to closely track the corporate debt market, the Fed plans to form an index of bonds through its SMCCF purchases. The forecasted purchase activity is already looking to mimic the market's consolidation. Of the nearly 800 companies the Fed plans to buy bonds from, the top 10 beneficiaries are set to make up about 15% of the purchases.
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Here are the top 10 beneficiaries of the planned buying, according to the Fed's published Broad Market Index .
10. BMW
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Index weight: 1.25%
9. Comcast
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Cindy Ord / Getty Images
Index weight: 1.32%
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8. Ford
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Sean Gallup/Getty Images
Index weight: 1.34%
7. General Electric
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Mike Simons / Getty Images
Index weight: 1.48%
5 (tie). Verizon
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Rob Kim/Contributor/Getty Images
Index weight: 1.60%
5 (tie). Apple
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Spencer Platt/Getty Images
Index weight: 1.60%
4. AT&T
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Index weight: 1.71%
3. Daimler
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REUTERS/Laszlo Balogh
Index weight: 1.72%
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1 (tie). Volkswagen
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Volkswagen
Index weight: 1.74%
1 (tie). Toyota
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Reuters/Carlos Barria
Index weight: 1.74%
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