Market Support Programs

United States: Primary Market Corporate Credit Facility and Secondary Market Corporate Credit Facility

Operational: June 29, 2020 (PMCCF); May 12, 2020 (

Purpose

To “support credit to large employers” which the PMCCF provided for “new bond and loan issuance” while the SMCCF “provide[d] liquidity for outstanding corporate bonds” (Board of Governors 2020d).

Key Terms

  • Launch Dates
    March 23, 2020
  • Operational Date
    June 29, 2020 (PMCCF); May 12, 2020 (SMCCF)
  • End Date
    December 31, 2020
  • Legal Authority
    Section 13(3) of the Federal Reserve Act
  • Administrator
    Federal Reserve Bank of New York; Blackrock
  • Overall Size
    $500 billion (PMCCF); $250 billion (SMCCF)
  • Eligible Collateral (or Purchased Assets)
    Corporate bonds with maturities up to four years (PMCCF); Corporate bonds (maturity up to five years) and exchange-traded funds (ETFs) (SMCCF)
  • Peak Utilization
    $0 (PMCCF); $14.1 billion on December 30, 2020 (SMCCF)

Key Design Decisions

Purpose1

Part of a Package1

Governance1

Administration1

Communication1

Disclosure1

SPV Involvement1

Program Size1

Source(s) of Funding1

Eligible Institutions1

Auction or Standing Facility1

Loan or Purchase1

Eligible Collateral or Assets1

Loan Amounts (or Purchase Price)1

Haircuts1

Interest Rate1

Fees1

Term1

Other Conditions1

Regulatory Relief1

International Cooperation1

Duration1

Key Program Documents

Key Program Documents

Key Program Documents

Key Program Documents

Key Program Documents

Key Program Documents

Key Program Documents

Taxonomy

Intervention Categories:

  • Market Support Programs

Countries and Regions:

  • United States

Crises:

  • COVID-19