Coupon Pass

If you just blew a ton of money on a new car to impress your friends, your finances may not be so stable. Because of this, you may have to sell some of your assets or purchase an investment that will yield the type of income you need to sustain your new massive payment.

The Federal Reserve is responsible for maintaining the stability of the market, just like you are responsible for maintaining the stability of your finances. Because of this, we have coupon passes.

When a coupon pass occurs, the Fed is buying treasury securities from dealers to keep reserves stable.