Today, the BDA submitted a letter to the Federal Reserve in support of the recent creation of the Secondary Market Corporate Credit Facility (SMCCF). In the letter, the BDA states its belief that the SMCCF has the potential to help the corporate bond market return to normal conditions quickly as the corporate bond market is not currently operating effectively enough to support the needs of issuers and investors.
The letter can be viewed here.
While the BDA supports the creation of the SMCCF, the letter reiterates the importance that the program is operated with several principles in mind.
- Diversity of Participants
- Transparency in Operations
- Anonymous, All-to-All Trading
- Fairness of the Facility