Secondary Market Corporate Credit Facility

The Federal Reserve established the Secondary Market Corporate Credit Facility (SMCCF) on March 23, 2020 to support credit to employers by providing liquidity to the market for outstanding corporate bonds.

The SMCCF will purchase in the secondary market corporate bonds issued by investment grade U.S. companies and U.S.-listed exchange-traded funds whose investment objective is to provide broad exposure to the market for U.S. investment grade corporate bonds. Treasury, using the ESF, will make an equity investment in the SPV established by the Federal Reserve for this facility.

The SMCCF is established by the Federal Reserve under the authority of Section 13(3) of the Federal Reserve Act, with approval of the Treasury Secretary.

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Last Update: March 24, 2020