The New York Fed announced that the Secondary Market Corporate Credit Facility will begin making purchases of ETF’s today. It is expected that the Primary Market Corporate Credit Facility will become operational in the coming days.
*The BDA recently wrote in favor of the SMCCF. The recommendations can be viewed here.
The notice can be viewed here.
The Secondary Market Corporate Credit Facility may purchase U.S.-listed ETFs whose investment objective is to provide broad exposure to the market for U.S. corporate bonds. The preponderance of ETF holdings will be of ETFs whose primary investment objective is exposure to U.S. investment-grade corporate bonds, and the remainder will be in ETFs whose primary investment objective is exposure to U.S. high-yield corporate bonds.
The New York Fed also released a range of other documents that will govern the programs, including the agreement governing its relationship with BlackRock, which will assist in the purchases.