Report
COVID Response: The Primary and Secondary Corporate Credit Facilities
Boyarchenko, Nina; Cox, Caren; Crump, Richard K.; Danzig, Andrew; Kovner, Anna; Shachar, Or; Steiner, Patrick (2021-09-01)
The Federal Reserve introduced the Primary Market Corporate Credit Facility (PMCCF) and the Secondary Market Corporate Credit Facility (SMCCF) in response to the severe disruptions in corporate bond markets triggered by the COVID-19 pandemic and subsequent economic shutdowns. The Corporate Credit Facilities (CCFs) were designed to work together to restore functioning of credit markets, with an overarching goal of facilitating credit provision to the non-financial corporate sector of the U.S. economy. This paper provides an overview of the CCFs, including detailing the facilities’ design, ...
Staff Reports , Paper 986

Journal Article
The Primary and Secondary Corporate Credit Facilities
Boyarchenko, Nina; Cox, Caren; Crump, Richard K.; Danzig, Andrew; Kovner, Anna; Shachar, Or; Steiner, Patrick (2022-07-01)
The Federal Reserve introduced the Primary Market Corporate Credit Facility (PMCCF) and the Secondary Market Corporate Credit Facility (SMCCF) in response to the severe disruptions in corporate bond markets triggered by the COVID-19 pandemic and subsequent economic shutdowns. The Corporate Credit Facilities (CCFs) were designed to work together to restore functioning of credit markets, with an overarching goal of facilitating credit provision to the nonfinancial corporate sector of the U.S. economy. This article provides an overview of the CCFs, detailing the facilities’ design, documenting ...
Economic Policy Review , Volume 28 , Issue 1

Report
It’s What You Say and What You Buy: A Holistic Evaluation of the Corporate Credit Facilities
Boyarchenko, Nina; Kovner, Anna; Shachar, Or (2020-07-01)
We evaluate the impact of the Federal Reserve corporate credit facilities (PMCCF and SMCCF). A third of the positive effect on prices and liquidity occurred on the announcement date. We document immediate pass-through into primary markets, particularly for eligible issuers. Improvements continue as additional information is shared and purchases begin, with the impact of bond purchases larger than the impact of purchases of ETFs. Exploiting cross-sectional evidence, we see the greatest impact on investment grade bonds and in industries less affected by COVID, concluding that the improvement in ...
Staff Reports , Paper 935