On Monday, March 23, 2020, in response to the evolving economic crisis created by the COVID-19 pandemic, U.S. Treasury and the Federal Reserve authorized the establishment of two new facilities to support credit for large employers: the Primary Market Corporate Credit Facility (PMCCF), which will provide credit for new bond and loan issuance by directly purchasing eligible corporate bonds from investment grade issuers, and the Secondary Market Corporate Credit Facility (SMCCF), which will provide liquidity for outstanding corporate bonds and eligible exchange-traded funds (ETFs) by buying corporate bonds and ETFs in the secondary market. This Legal Update provides further detail on both vehicles.
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