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.
- Program Terms and Conditions
- Frequently Asked Questions
- Seller Certification Materials
- Eligible Sellers
- Composition of the SMCCF Broad Market Index
- Competitive Procurement Process for Certain Vendor Roles Supporting Emergency Lending Facilities and Programs
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.
- Administration Agreement
- Control Agreement
- Credit Agreement
- Custodian Agreement
- Investment Management Agreement
- Investment Memorandum of Understanding
- Legal Services Engagement Letter
- Limited Liability Company Agreement
- Preferred Equity Account Agreement
- Preferred Equity Investments Agreement
- Security Agreement
- State Street Fee Letter