The Federal Reserve will begin purchasing individual corporate bonds to bolster the availability of credit for large employers, the Reserve Board announced Monday, June 15.
The announcement allows the Fed to buy corporate bonds in the secondary market from investment-grade U.S. companies under certain conditions established in a term sheet and FAQs page.
The Fed will soon provide additional information about the Primary Market Corporate Credit Facility to provide companies access to credit by purchasing qualifying bonds as the sole investor in a bond issuance or purchasing portions of syndicated loans or bonds at issuance. Learn more.