Why BlackRock Has a Role in the Fed Bond-Buying Spree: QuickTake
Blackrock "At the beginning of 2020, it had about $7.4 trillion in assets under management."
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What is BlackRock’s role?
The Fed is turning to New York-based BlackRock to oversee three separate debt-buying efforts. It will buyand manage portfolios of newly issued bonds from U.S. companies as well as portfolios of investment-grade bonds and ETFs, according to the Federal Reserve Bank of New York. (BlackRock is the world’s largest issuer of ETFs.) BlackRock will also oversee purchases of packages of mortgages on commercial real estate guaranteed by one of three government agencies: Government National Mortgage Association (Ginnie Mae), Federal National Mortgage Association (Fannie Mae), and Federal Home Loan Mortgage Corp. (Freddie Mac). Still to be determined is how much money BlackRock will direct in these efforts.
EO 131818 December 17, 2017
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So is Blackrock buying the newly issued bonds or is the Fed? If Blackrock is forced to buy the bonds will they liquidate the 7.4 trillion dollars of assets and use the proceeds? If so then no dollars are printed…
https://www.bloomberg.com/news/articles/2020-03-25/why-blackrock-has-a-role-in-the-fed-bond-buying-spree-quicktake