As the Federal Reserve prepares to formally launch its massive bond-buying program, corporations have expressed hesitance over participating, even if it would supply them with much needed credit, said the Wall Street Journal.

The Federal Reserve earlier pledged to buy hundreds of billions of dollars' worth of corporate bonds as a way to ensure continued access to credit at a time when conditions had severely tightened in the face of the global pandemic. However, now that the initial setup is nearly complete, it appears fewer corporations will avail themselves of aid than initially thought.

The Journal noted, first, that credit market conditions have improved just by the Fed announcing that the program will exist, and so not as many companies actually need aid. Second, many are concerned that as more states end pandemic lockdowns, taking aid from the Fed might be seen as a sign of weakness, and so it might have the perverse effect of actually making investors less confident in the companies. This would be difficult to keep quiet, too, because the central bank plans to disclose the names of participants as well as the amount of their bonds bought and how much the Fed paid. Also, companies have taken pause at the requirement that they certify that they are U.S.-based and have not received other aid under the CARES Act. Finally, there were some companies that thought it would be wrong for them to take the aid that others need more.

Despite the bond-buying program possibly having few takers, however, the recent thawing of credit markets was still predicated on the announcement of its existence. This indicates that while firms may not necessarily participate in it, they still want to know it's there. While the bond buying-program has yet to launch, the Journal said that bond sellers are growing impatient and that delays could shatter the confidence that followed the initial announcement.