What Are All the Fed’s Corporate & Investor Bailout Programs and SPVs? Here’s the Whole Shitload of Them | Wolf Street
QE unlimited: The purchases of Treasury securities and MBS will be unlimited (previously the limit had been $500 billion of Treasury securities and $200 billion of MBS). For this week is said it would buy $375 billion in Treasury securities and $250 billion in MBS.
QE CMBS: QE purchases will now include CMBS but only those that are backed by the GSEs and Ginnie Mae.
PMCCF to lend to large companies. Via the Primary Market Corporate Credit Facility, the Fed will lend to a Special Purpose Vehicle (SPV) that then provides bridge loans with maturities of four years to large investment-grade corporations. They can defer interest and principal payments for six months, which is extendable at the Fed’s discretion. With this, the Fed is trying to kill the pricing of risk of overleveraged companies and protect and make whole the shareholders and creditors of these companies
SMCCF to buy corporate bonds and US-listed bond ETFs. Under the Secondary Market Corporate Credit Facility, the Fed lends to an SPV to buy existing investment-grade corporate bonds and corporate-bond ETFs.
The insidious TALF is baaaaack. The Fed concocted this Term Asset-Backed Securities Lending Facility during the prior Financial Crisis. Under this program, the Fed lends money to an SPV which lends on a non-recourse basis to entities and well-connected individuals so that they can buy recently issued asset-backed securities (ABS) that they post as collateral.