Fed moves to ease commercial paper strains
Commercial paper market under “considerable strain” due to coronavirus-related uncertainty, Fed says
The Federal Reserve announced that it will be stepping in to soothe liquidity strains in the commercial paper market by reviving its crisis-era Commercial Paper Funding Facility (CPFF).
The CPFF enables the Fed to provide funding to a special purpose vehicle (SPV), which purchases the unsecured and asset-backed commercial paper. The intention is to provide a liquidity backstop to issuers of commercial paper.
The last time this measure was used was in October 2008, to act as a lender-of-last
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