Fed picks Pimco to run commercial paper facility

The Federal Reserve has picked Pimco, a bond fund, to manage the assets of its Commercial Paper Funding Facility, which accepts unsecured debt notes direct from the issuer.

The New York Fed made the announcement on Tuesday, adding that State Street, a bank, would serve as custodian and administrator.

Pimco counts Alan Greenspan, a former chairman of the Fed, among its consultants.

The facility, which becomes operational on 27 October, will accept three-month unsecured and asset-backed commerci