Commercial Paper Funding Facility
E560323
The Commercial Paper Funding Facility is a special Federal Reserve program created to support the short-term corporate funding markets by purchasing commercial paper during periods of severe financial stress.
Observed surface forms (1)
| Surface form | Occurrences |
|---|---|
| Commercial Paper Funding Facility (CPFF) | 1 |
Statements (45)
| Predicate | Object |
|---|---|
| instanceOf |
Federal Reserve lending facility
ⓘ
emergency liquidity facility ⓘ |
| administeredBy | Federal Reserve Bank of New York NERFINISHED ⓘ |
| backstopType | liquidity backstop ⓘ |
| beneficiary |
U.S. corporations
ⓘ
financial institutions ⓘ money market mutual funds ⓘ |
| category |
crisis intervention program
ⓘ
monetary policy tool ⓘ |
| country |
United States of America
ⓘ
surface form:
United States
|
| createdBy | Board of Governors of the Federal Reserve System NERFINISHED ⓘ |
| createdDuring | 2008 financial crisis ⓘ |
| design | special purpose vehicle purchases commercial paper ⓘ |
| effect | helped stabilize short-term funding markets in 2008–2009 ⓘ |
| eligibility |
U.S. issuers of commercial paper
ⓘ
high-quality commercial paper ⓘ |
| fundingSource | Federal Reserve loans to special purpose vehicle ⓘ |
| impact |
improved market liquidity
ⓘ
narrowed spreads in commercial paper rates ⓘ |
| jurisdiction | Federal Reserve System NERFINISHED ⓘ |
| launchDate | October 2008 ⓘ |
| legalAuthority | Section 13(3) of the Federal Reserve Act ⓘ |
| mitigatedBy | fees and haircuts on commercial paper purchases ⓘ |
| operator | Federal Reserve NERFINISHED ⓘ |
| policyGoal |
restore market functioning
ⓘ
support credit flow to businesses and households ⓘ |
| purpose |
help businesses meet short-term funding needs
ⓘ
mitigate strains in money markets ⓘ provide liquidity to short-term corporate funding markets ⓘ support the commercial paper market ⓘ |
| reasonForReintroduction | address severe disruptions in commercial paper market due to COVID-19 shock ⓘ |
| reintroducedDuring | COVID-19 pandemic ⓘ |
| reintroductionDate | March 2020 ⓘ |
| relatedTo |
Money Market Investor Funding Facility
NERFINISHED
ⓘ
Primary Dealer Credit Facility NERFINISHED ⓘ Term Asset-Backed Securities Loan Facility NERFINISHED ⓘ |
| risk | credit risk from purchased commercial paper ⓘ |
| riskMitigation | reduce rollover risk in commercial paper markets ⓘ |
| sector |
money markets
ⓘ
short-term funding markets ⓘ |
| status | temporary facility ⓘ |
| supportType | direct purchases of three-month commercial paper ⓘ |
| targetInstrument |
asset-backed commercial paper
ⓘ
commercial paper ⓘ |
| timeHorizon | designed as a temporary emergency measure ⓘ |
Referenced by (2)
Full triples — surface form annotated when it differs from this entity's canonical label.
this entity surface form:
Commercial Paper Funding Facility (CPFF)