Washington, D.C. – The bipartisan Congressional Oversight Commission issued the following statement on the Secondary Market Corporate Credit Facility:
“The Commission notes that pursuant to the Fed’s November 9, 13(3) facility update the Secondary Market Corporate Credit Facility (SMCCF) is still purchasing approximately $20 million worth of corporate bonds per day. The Commission reiterates its October 15 recommendation that the SMCCF cease making purchases at this time. Given the Federal Reserve’s success in buoying corporate bond markets, and recognizing that primary market investment-grade corporate bond rates are now below pre-pandemic levels, the Commission does not believe that further secondary market corporate bond purchases through the SMCCF are necessary.”
The Congressional Oversight Commission is a five-person panel that was established by the CARES Act. The Commission is focused specifically on the economic stabilization efforts of the Treasury Department and the Federal Reserve. The members of the Commission are Senator Pat Toomey (R-Pa.), Congresswoman Donna Shalala (D-Fla.), Congressman French Hill (R-Ark.), and Bharat Ramamurti. The Commission’s chairperson has not been appointed yet.