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