NEW YORK—The Federal Reserve Bank of New York today announced an agreement with a new cash investment manager for the Secondary Market Corporate Credit Facility (SMCCF) following the completion of its previously announced competitive procurement process.
When the Federal Reserve launched a number of emergency liquidity facilities in the first half of 2020, some vendor roles were filled through direct negotiations with service providers to expedite program implementation and support the flow of credit to households and businesses in the face of the severe economic disruption caused by the COVID-19 pandemic. The New York Fed did so with a view that those roles would be subject to a competitive procurement process once the immediate need to commence operations of the facilities had passed.
In October 2020, the New York Fed commenced a multiphase competitive procurement process to encourage a wide range of firms to review the eligibility criteria and express interest. Through these efforts, the New York Fed seeks to further its mandate to support equal opportunity and diversity in the implementation of these facilities. The SMCCF cash investment manager was the first role to be opened under this process.
After submitting a prequalification document, selected firms were asked to respond to a request for proposal (RFP). Of the firms that responded to the RFP, Payden & Rygel, a private, California-based global investment adviser, was selected as the new cash investment manager for the SMCCF. Payden & Rygel is expected to begin providing cash investment management services in approximately one month following a transition period from the current provider.