Markets Wired

WASHINGTON – U.S. Treasury Secretary Steven T. Mnuchin issued the following statement on the launch of the Primary Market Corporate Credit Facility:

“Since announcing the Primary and Secondary Market Corporate Credit Facilities (PMCCF and SMCCF) in late March, we have seen significant improvements in credit market liquidity.  Investment-grade primary and secondary market spreads have tightened substantially and there has been more investment-grade corporate bond issuance this year than all of last year.  These are clear signs that the emergency facilities established by the Federal Reserve with my authorization under Section 13(3) of the Federal Reserve Act, are working as intended to provide liquidity to the financial system and support American workers, households, and businesses.

“Today, the PMCCF, operated by the Federal Reserve Bank of New York and supported by funds committed by the Treasury Department under the CARES Act, will become operationally available to provide bond financing to U.S. companies with investment grade debt ratings, as well as those that were investment grade as of March 22, 2020.  By providing large employers access to backstop funding, the PMCCF will help U.S. businesses maintain their operations and support a robust recovery as we continue to safely reopen our economy.”

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