ANNOUNCEMENT 10 Aug 2020

In August 2020, the Federal Reserve purchased Pfizer Inc corporate bonds as part of the Secondary Market Corporate Credit Facility (SMCCF) scheme.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The Federal Reserve, Monetary Policy Tools, "Secondary Market Corporate Credit Facility".
https://www.federalreserve.gov/monetarypolicy/smccf.htm

The Federal Reserve Bank of New York, "Secondary Market Corporate Credit Facility".
https://www.newyorkfed.org/markets/secondary-market-corporate-credit-facility

Inception date: 10 Aug 2020 | Removal date: open ended

State loan

On 10 August 2020, the Federal Reserve announced the purchase of USD 10 million worth of Pfizer Inc corporate bonds over the past month. The operation is part of the Secondary Market Corporate Credit Facility scheme (SMCCF). The new total value of the transction was USD 10 million.

The SMCCF is considered as a special purpose vehicle (SPV), whose aim is to support market liquidity by purchasing U.S. eligible assets. The scheme was launched in March 2020 with a total of USD 25 billion.

Notably, the program was launched as part of the economic response to the COVID-19 pandemic.

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AFFECTED PRODUCTS