March 23, 2020
The Federal Reserve on Monday announced an open-ended commitment to buying Treasury and agency mortgage-back securities, including CMBS. One of a range of initiatives the Fed unveiled, the bond-buying commitment represents an expansion of the program the nation’s central bank announced a week earlier.
Other measures include the establishment of two facilities to support credit to large employers, the Primary Market Corporate Credit Facility and the Secondary Market Corporate Credit Facility; and a third facility, the Term Asset-Backed Securities Loan Facility, to support the flow of credit to consumers and businesses.
“The coronavirus pandemic is causing tremendous hardship across the United States and around the world,” the Fed said in a statement. “Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes, and to promote a swift recovery once the disruptions abate.”
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