Fed buying junk bond ETFs -
This will help keep the CLO-leveraged loan market from blowing up. They are mainly targeting companies whose bonds were recently downgraded from the lowest investment grade (BBB-) to the higher levels of junk (BB+ to BB-). But they are apparently also buying junk bond ETFs like HYG and JNK, which hold bonds rated below BB-.
For example, looking at HYG (i-Shares) - 33% of its holdings are single B rated (B), and 10% are CCC. So if the Fed is stepping in to buy this ETF, they are providing support for the junkier junk bonds too. The SPDR ETF (JNK) also has 35% in single B rated bonds, and 13% in CCC or under.