All my answers were found at the FAQ page of the SMCCF. The FED has done a great job with this FAQ page and you should check it out.
Question 1 - What are the eligibility requirements for ETFs in the SMCCF? The SMCCF will consider several factors in determining which ETFs will be eligible for purchase. Those considerations include: the composition of investment-grade and non-investment-grade rated debt, the management style, the amount of debt held in depository institutions, the amount of debt held in non-U.S. companies, the average tenor of underlying debt, the total assets under management, the average daily trading volume, and leverage, if any. Question 2 - What is a CCF? CCF is a term that will be thrown around as if everyone knows it. CCF stands for Corporate Credit Facility. (Put a SM or PM in front of it and you have 2 massive facilities that will completely distort the market.*not on fed FAQ) The combined size of the CCFs will be up to $750 billion. The PMCCF will leverage Treasury’s equity at 10 to 1 when acquiring corporate bonds or syndicated loans from Eligible Issuers that are investment grade at the time of purchase. The PMCCF will leverage Treasury’s equity at 7 to 1 when acquiring corporate bonds or syndicated loans from Eligible Issuers that are rated below investment grade at the time of purchase.
The SMCCF will leverage Treasury’s equity at 10 to 1 when acquiring corporate bonds of issuers that are investment grade at the time of purchase and when acquiring ETFs whose primary investment objective is exposure to U.S. investment-grade corporate bonds. The SMCCF will leverage Treasury’s equity at 7 to 1 when acquiring corporate bonds of issuers that are rated below investment grade at the time of purchase and in a range between 3 to 1 and 7 to 1, depending on risk, when acquiring any other type of eligible asset.
Question 3 -
What is the difference between the Primary and Secondary CCF?
The PMCCF will provide a funding backstop for corporate debt to Eligible Issuers so that they are better able to maintain business operations and capacity during the period of dislocation related to COVID-19.
The SMCCF will support market liquidity for corporate debt by purchasing individual corporate bonds of Eligible Issuers and exchange-traded funds (ETFs) in the secondary market.