Fed: Primary Market Corporate Credit Facility (PMCCF) operational and available
|The Federal Reserve announced on Monday that it has launched the Primary Market Corporate Credit Facility (PMCCF).
Key takeaways from the press release
"Relevant certification forms, other transaction documentation and related materials for the PMCCF are now available."
"Releasing a new term sheet for the PMCCF, adding pricing and other information."
"Pricing will be issuer-specific and informed by market conditions, plus a 100 bps facility fee."
"Prices will also be subject to minimum and maximum spreads over comparable maturity Treasury securities."
"Such spread caps and floors will vary based on an eligible issuer's credit rating as of the date on which the facility makes a purchase."
Market reaction
Wall Street's main indexes continue to push higher after this announcement. As of writing, the S&P 500 and the Dow Jones Industrial Average were gaining 1.3% and 1.95%, respectively, while the Nasdaq Composite was up 0.96%.
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