Commercial Paper Funding Facility
Commercial Paper Funding Facility (CPFF) was a system created by the United States
First iteration (2008–2010)
The CPFF was created on October 27, 2008 and funded a
Explanation
The CPFF began operations on October 27, 2008 following the collapse of
This program was created at the same time that the Federal Deposit Insurance Corporation implemented the Temporary Liquidity Guarantee Program to increase liquidity in inter-bank lending.[citation needed]
Eligibility
Only "Active" U.S. issuers of commercial paper (including those with a foreign parent), were eligible to sell commercial paper to the SPV. Active was defined as having at least three consecutive months of commercial paper outstanding during the period starting January 1, 2008 through August 31, 2008.[citation needed]
The commercial paper had to be rated at least A-1/P-1/F1 by a major nationally recognized statistical rating organization (NRSRO) and, if rated by multiple major NRSROs, must have been rated at least A-1/P-1/F1 by two or more major NRSROs.[citation needed]
As part of the application process to be eligible for this program issuers had to pay a 10 basis point (0.1%) fee based on their maximum CP balance during the active period mentioned above.[3]
Second iteration (2020–2021)
On 17 March 2020, following a
See also
- Federal Reserve System
References
- ^ "Regulatory Reform - Commercial Paper Funding Facility (CPFF)". Federal Reserve. 18 March 2020. Retrieved 19 March 2020.
- SSRN 1911454.
- ^ "Commercial Paper Funding Facility: Frequently Asked Questions". Federal Reserve Bank of New York. Retrieved 18 March 2020.
- ^ Long, Heather (17 March 2020). "Federal Reserve launches special fund to keep credit flowing in U.S. economy during coronavirus scare". Washington Post. Retrieved 17 March 2020.
- ^ "Federal Reserve Board announces establishment of a Commercial Paper Funding Facility (CPFF) to support the flow of credit to households and businesses". Board of Governors of the Federal Reserve System. 17 March 2020. Retrieved 17 March 2020.