LQD: up today because the fed is buying Junk Bonds?

LQD (intermediate term “investment grade” bond fund) is up 3.33% today. At little more than I was hoping for. Why?

Maybe because the FED announced today that it is buying junk bonds?

Whether that is the reason or not the FED is indeed buying junk bonds now. Specificially, it is buying bonds that were investment grade (BBB) before March 22 but have been downgraded since.

Why March 22? Because Ford was downgraded from BBB on March 24?

So anyway, I am guessing that LQD is up more than expected today because some of the bonds in the fund that were downgraded from BBB are being purchased by the FED.

I bought a little more of LQD today thinking the FED may continue to use this method to support the economy (if needed) and reduce the overall risks for LQD.

Best,

Jim

They also announced they would buy “high yield ETFs”

I wonder if there is any point to trying to beat the market - if the Fed just buys everything, is there going to be such thing as alpha? Why would buying a good company at a cheap price be better than buying a bad company at an expensive price, if Jerome is just going to buy it all anyways?