Federal Reserve Announces Updates to Secondary Market Corporate Credit Facility

June 16, 2020

Federal Reserve Announces Updates to Secondary Market Corporate Credit Facility
On June 15, 2020, the Federal Reserve (Fed) announced updates and released an updated term sheet relating to the Secondary Market Corporate Credit Facility (SMCCF). The Federal Reserve Bank of New York will begin buying eligible corporate bonds issued by investment grade U.S. companies to create a portfolio that is based on a broad, diversified market index of U.S. corporate bonds. These purchases will complement the SMCCF’s current purchases of exchange-traded funds that invest in investment grade and high yield corporate bonds. The SMCCF was created on March 23, 2020 to support credit to large employers in response to the COVID-19 pandemic by providing liquidity to the market for their outstanding corporate bonds. The SMCCF will last until September 30, 2020, unless extended.
The Fed’s press release and the updated SMCCF term sheet are available at the links below.
Click Here.
Click Here.


Categories

COVID-19, Exchange-Traded Funds (ETFs)