The Federal Reserve Bank of New York today released an expanded set of Frequently Asked Questions regarding the Primary Market and Secondary Market Corporate Credit Facilities.
The Primary Market Corporate Credit Facility (PMCCF) was established to support credit to large employers for bond and syndicated loan issuance. The PMCCF will allow companies access to credit so that they are better able to maintain business operations and capacity during the period of dislocations related to the pandemic. The Secondary Market Corporate Credit Facility (SMCCF) was established to support credit to large employers by providing liquidity for outstanding corporate bonds.
As detailed in the FAQs released today, the SMCCF is expected to begin purchasing eligible ETFs in early May. The PMCCF is expected to become operational and the SMCCF is expected to begin purchasing eligible corporate bonds soon thereafter. Additional details provided in these FAQs include information on eligibility of issues and issuers, guidance on compliance with CARES Act requirements, and terms applicable to underwriting for new issue syndications.
More information on the CCFs is forthcoming, including specific start dates of the facilities, issuer certification requirements and more detailed instructions, more details on pricing, among other operational details.
