The Federal Reserve bought bonds issued by companies includingAT&T Inc., UnitedHealth Group Inc., and Walmart Inc. as part ofits emergency lending program set up in response tothe Covid-19 pandemic, according to newdisclosures.

On June 16, the U.S. central bank began purchasing securities ofindividual issuers as part of a broad index it created to includecompanies that were eligible for the program.

The disclosures, postedSunday, showed that of the $207 million of purchases made on thefirst day of buying, about 21 percent were of debt issued by firmsin the consumer non-cyclical sector, while 15 percent were ofconsumer cyclical debt and 10 percent were of technology debt.Issues rated below investment grade comprised 3.6 percent of thesecurities acquired.

In a separate disclosure, the NewYork Fed released the composition of the broad index the centralbank is using to conduct the purchases. Fed officials have said thegoal of the buying is to maintain liquidity in the market forcorporate debt, so that issuers are able to access capital despitethe deep economic downturn created by the pandemic. The index iscomprised of almost 800 issuers.

In mid-May, the Fed began buying exchange-traded funds (ETFs)invested in corporate debt as it readied for outright purchases. Asof Tuesday, the Fed had amassed $8.71 billion of assets includingETFs and individual securities through the program, known as theSecondary Market Corporate Credit Facility.

On June 17, Fed Chairman Jerome Powell told the House FinancialServices Committee that the central bank would reallocate purchases of ETFstoward individual debt securities through the index itcreated.

"Buying cash bonds is going to form the primary mode of supportover time by which we support market function," Powell said duringthe hearing. "Over time, we will gradually move away fromETFs."

The program is set to expire on Sept. 30.

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