It’s what you say and what you buy: A holistic evaluation of the corporate credit facilities

A-Tier
Journal: Journal of Financial Economics
Year: 2022
Volume: 144
Issue: 3
Pages: 695-731

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We evaluate the impact of the Federal Reserve corporate credit facilities (PMCCF and SMCCF) on corporate bond markets. Conditions in primary markets improve once the facilities are announced, particularly for issuers that need to refinance before 2022. Issuance accelerates before spreads normalize. The secondary market points to a causal role for the facilities, with a differential impact on eligible issues and a significant effect of direct bond purchases, but less so for purchases through ETFs. We find evidence that dealers link the primary and secondary market recovery, with facilities affecting dealer willing to underwrite issuances and intermediate in secondary markets.

Technical Details

RePEc Handle
repec:eee:jfinec:v:144:y:2022:i:3:p:695-731
Journal Field
Finance
Author Count
3
Added to Database
2026-01-24