In Follow the Fed – it prints the money, we focused on how just the announcement of the intent to buy corporates led to an improved tone in the market and historic corporate credit new issuance. The actual Fed buying of the debt has led to even further improvement in spreads as well as even more new issuance. The Secondary Market Corporate Credit Facility (SMCCF) began buying ETFs on May 12 with the goal of assisting both the Investment Grade (IG) and High Yield (HY) credit flow due to the impact of the COVID-19 shutdown. Since the initial March 23 Fed announcement to backstop the corporate credit market, through May 29, there has been a combined $987 billion in new issuance according to Tim Reilly on our corporate desk. That was in just over two months.

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