The Federal Reserve’s Main Street Lending Program, Aimed at Supporting Small to Mid-Size Businesses
The results of the SUN auction on September 8, 2020 for series SPN03201209 (new issuance), SPN12210909 (new issuance), FR0086 (reopening), FR0087 (reopening), FR0080 (reopening), FR0083 (reopening) and FR0076 (reopening) show the total incoming bids of Rp 52 trillion, with a total nominal of Rp 22 trillion won. The total incoming bids were lower than the previous SUN auction (25 August 2020) which amounted to Rp 78 trillion, and the SUN auction on 11 August 2020 which amounted to Rp 106 trillion. The yield of Government Bonds on 8 September reached 6.87%, an increase of 17 bps from the previous SUN auction date of 6.7% in 25 August.
The Federal Reserve’s Main Street Lending Program, aimed at supporting small to mid-size businesses through the coronavirus pandemic, has mostly made loans in the millions of dollars, according to data disclosed by the central bank Tuesday. Of the 118 loans bought by the Fed’s program through the end of August, only 11 were under $1 million. Only one, at $265,000 was close to the $250,000 minimum loan size. (Bloomberg)
Source: Danareksa Sekuritas Debt Research