Secondary Market Corporate Credit Facility

The Secondary Market Corporate Credit Facility (SMCCF) was established to support credit to large employers by providing liquidity for outstanding corporate bonds.

The SMCCF may purchase in the secondary market eligible corporate bonds as well as U.S.-listed ETFs whose investment objective is to provide broad exposure to the market for U.S. corporate bonds. Such corporate bonds and ETFs must meet the eligibility criteria specified in the SMCCF term sheet.

The Federal Reserve Bank of New York will finance a special purpose vehicle (SPV) for the SPV to purchase qualifying corporate bonds in the secondary market and qualifying ETFs. The Department of the Treasury will make a $75 billion equity investment in the SPV established by the Federal Reserve for this facility and the Primary Market Corporate Credit Facility. The SMCCF was established by the Federal Reserve under the authority of Section 13(3) of the Federal Reserve Act, with approval of the Treasury Secretary.

Additional information will be published before the facility is launched.


Vendors

On March 24, 2020, the New York Fed retained BlackRock Financial Markets Advisory as a third-party vendor to serve as the investment manager for this facility. BlackRock was selected for this role after considering its expertise with purchasing large amounts of all relevant types of corporate debt issuance and corporate bonds in the secondary market, deep knowledge and substantial experience in the corporate debt markets, and robust operational and technological capabilities. Additional information regarding the terms of this relationship is available here.

On April 15, 2020, the New York Fed retained State Street Bank & Trust Company (State Street) as a third-party vendor to serve as the custodian and administrator for this facility. State Street was selected for this role after evaluating its response to a request for proposals (RFP), which considered implementation and operational capabilities, as well as overall qualifications needed to support the facility.

Facility Agreements

Announcements
New York Fed Begins Competitive Procurement Process for Certain Vendor Roles Supporting Emergency Lending Facilities and Programs
October 5, 2020

New York Fed Announces the First Wave of Firms Selected To Broaden its Counterparty Base for CPFF and SMCCF
September 9, 2020

Federal Reserve Board Announces an Extension through December 31 of its Lending Facilities that were Scheduled to Expire on or around September 30
July 28, 2020

New York Fed Looks to Expand 13(3) Facilities Counterparties and Agents for CPFF, SMCCF and TALF
July 23, 2020

Federal Reserve Board Announces Expansion of Counterparties in the Term Asset-Backed Securities Loan Facility, Secondary Market Corporate Credit Facility, and Commercial Paper Funding Facility
July 23, 2020

New York Fed Announces Start of Additional Secondary Market Corporate Credit Facility Purchases on June 16
June 15, 2020

New York Fed Announces Start of Certain Secondary Market Corporate Credit Facility Purchases on May 12
May 11, 2020

New York Fed Releases Additional Information on Primary Market and Secondary Market Corporate Credit Facilities in Preparation for Series of May Launches
May 4, 2020

New York Fed Releases Frequently Asked Questions on the Primary Market and Secondary Market Corporate Credit Facilities
April 17, 2020

Federal Reserve Takes Additional Actions to Provide Up to $2.3 Trillion in Loans to Support the Economy
April 9, 2020

Federal Reserve Announces Extensive New Measures to Support the Economy
March 23, 2020

Reporting

Video: The Corporate Credit Facilities, Explained

Contacts

Contact for General Inquiries
smccf@ny.frb.org

Contacts for Media Inquiries
Suzanne Elio
suzanne.elio@ny.frb.org

Betsy Bourassa
betsy.bourassa@ny.frb.org