Federal Reserve will begin to unwind the corporate bond holdings it acquired last year through an emergency lending facility launched to combat the economic impacts of the COVID-19 pandemic
- says portfolio sales will be gradual and orderly
- says sales will aim to minimize the potential for adverse impact on market functioning
- says will take into account daily liquidity and trading conditions for exchange traded funds and corporate bonds
- it will begin winding down now-closed secondary market corporate credit facility's portfolio
- it intends to sell full portfolio by the end of the year
- as of April 30, smccf held $13.8 bln, including about $8.6 bln of corporate bond etfs and $5.2 bln of bonds - fed data
- says New York Fed will announce sale details soon, before sales begin
Headlines via Reuters
