Gilchrist, Simon; Wei, Bin; Yue, Vivian Z.; Zakrajšek, Egon - 2024 - This version: March 2024
, significantly reduced investment-grade credit spreads across the maturity spectrum-irrespective of the program's maturity …-eligibility criterion-and ultimately restored the normal upward-sloping term structure of credit spreads. The Federal Reserve's actual … purchases reduced credit spreads of eligible bonds 3 basis points more than those of ineligible bonds, a sizable effect given …