6.29.20
On Monday, June 29, the Federal Reserve (Fed) formally opened its Corporate Debt Lending program. The program, designed to counteract the economic crisis caused by the COVID-19 pandemic, will support the issuance of new debt by large corporations. The new program will offer two ways for corporations to participate: (1) the Fed will purchase eligible bonds and syndicated loans with investors and (2) as sole investor, the Fed will buy eligible bonds, subject to minimum and maximum spreads based on maturities of related government bonds.