A major purchaser of corporate bonds is

Question

Quizplus · Accepted Answer

Pension and retirement funds are major purchasers of corporate bonds as they seek to generate higher returns than traditional fixed income investments such as government bonds. State and local governments may also purchase corporate bonds, but they are not a major purchaser. Money market mutual funds may purchase short-term corporate debt, but they typically do not invest in longer-term corporate bonds. The Federal Reserve may purchase corporate bonds as part of its quantitative easing program, but it is not a major purchaser in the traditional sense.

A Major Purchaser of Corporate Bonds Is