The SMCCF purchases ETF shares and corporate bonds at fair market value in the secondary market and avoids purchasing shares of ETFs when they trade at prices that materially exceed the estimated net asset value of the underlying portfolio. The pace of purchases is a function of the condition of the U.S. corporate bond markets.
With funding from the CARES Act, the Department of the Treasury has committed to make a $ billion equity investment in the SPV for the PMCCF and SMCCF, with a $ billion allocation toward the SMCCF. The SMCCF staggered its launch of ETF and bond purchases in order to act as quickly and effectively as possible.