Board of Governors of the Federal Reserve System

Secondary Market Corporate Credit Facility

The Federal Reserve established the Secondary Market Corporate Credit Facility (SMCCF) on March 23, 2020, to support credit to employers by providing liquidity to the market for outstanding corporate bonds.

The SMCCF supported market liquidity by purchasing in the secondary market corporate bonds issued by investment grade U.S. companies or certain U.S. companies that were investment grade as of March 22, 2020, as well as U.S.-listed exchange-traded funds whose investment objective is to provide broad exposure to the market for U.S. corporate bonds. The SMCCF's purchases of corporate bonds  created a portfolio that tracked a broad, diversified market index of U.S. corporate bonds. The Treasury, using funds appropriated to the ESF through the CARES Act, made an equity investment in an SPV established by the Federal Reserve for the SMCCF 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. The SMCCF ceased purchasing eligible assets on December 31, 2020.

• Term Sheet (June 28, 2020) (PDF)
• FAQs

Letter from Chair Powell to Secretary Mnuchin regarding emergency lending facilities (November 20, 2020)

Reports to Congress

• Periodic Report: Update on Outstanding Lending Facilities Authorized by the Board under Section 13(3) of the Federal Reserve Act (PDF) (October 13, 2021)
  • SMCCF Transaction-specific Disclosures (XLSX) (October 13, 2021)
• Periodic Report: Update on Outstanding Lending Facilities Authorized by the Board under Section 13(3) of the Federal Reserve Act (PDF) (September 13, 2021)
  • SMCCF Transaction-specific Disclosures (XLSX) (September 13, 2021)
• Periodic Report: Update on Outstanding Lending Facilities Authorized by the Board under Section 13(3) of the Federal Reserve Act (PDF) (August 11, 2021)
  • SMCCF Transaction-specific Disclosures (XLSX) (August 11, 2021)
• Periodic Report: Update on Outstanding Lending Facilities Authorized by the Board under Section 13(3) of the Federal Reserve Act (PDF) (July 13, 2021)
  • SMCCF Transaction-specific Disclosures (XLSX) (July 13, 2021)
• Periodic Report: Update on Outstanding Lending Facilities Authorized by the Board under Section 13(3) of the Federal Reserve Act (PDF) (June 11, 2021)
  • SMCCF Transaction-specific Disclosures (XLSX) (June 11, 2021)
• Periodic Report: Update on Outstanding Lending Facilities Authorized by the Board under Section 13(3) of the Federal Reserve Act (PDF) (May 10, 2021)
  • SMCCF Transaction-specific Disclosures (XLSX) (May 10, 2021)
• Periodic Report: Update on Outstanding Lending Facilities Authorized by the Board under Section 13(3) of the Federal Reserve Act (PDF) (April 12, 2021)
  • SMCCF Transaction-specific Disclosures (XLSX) (April 12, 2021)
• Periodic Report: Update on Outstanding Lending Facilities Authorized by the Board under Section 13(3) of the Federal Reserve Act (PDF) (March 11, 2021)
  • SMCCF Transaction-specific Disclosures (XLSX) (March 11, 2021)
• Periodic Report: Update on Outstanding Lending Facilities Authorized by the Board under Section 13(3) of the Federal Reserve Act (PDF) (February 9, 2021)
  • SMCCF Transaction-specific disclosures (XLSX) (February 9, 2021)
• Periodic Report: Update on Outstanding Lending Facilities Authorized by the Board under Section 13(3) of the Federal Reserve Act (PDF) (January 11, 2021)
  • SMCCF Transaction-specific disclosures (XLSX) (January 11, 2021)

Archive:

2020 Reports

Related Press Releases

• Federal Reserve Board announces plans to begin winding down the portfolio of the Secondary Market Corporate Credit Facility (June 2, 2021)
• 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)
• 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)
• Federal Reserve Board announces updates to Secondary Market Corporate Credit Facility (SMCCF), which will begin buying a broad and diversified portfolio of corporate bonds to support market liquidity and the availability of credit for large employers (June 15, 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)