Commercial Paper Funding Facility: The Federal Reserve Becomes a CP Dealer

By: Francis Cianfrocca (Diary)  |  October 7th at 12:52 PM  | 

Here it is. That’s the Fed’s announcement of two new facilities. The Commercial Paper Funding Facility (CPFF) will create credit, to be made available to a “Special Purpose Vehicle” (SPV), as authorized under Section 13(3) (the “unusual and exigent circumstances” section) of the Federal Reserve Act. The SPV is authorized to purchase three-month dollar-denominated commercial paper from eligible issuers. There isn’t a lot of detail | Read More »