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Full-Text Articles in Macroeconomics
United States: Commercial Paper Funding Facility Ii, Lily S. Engbith
United States: Commercial Paper Funding Facility Ii, Lily S. Engbith
Journal of Financial Crises
The outbreak of the COVID-19 pandemic in early 2020 caused widespread economic uncertainty, prompting government officials to act swiftly to combat potentially severe fallout. On March 17, 2020, the Board of Governors of the Federal Reserve announced the revival of the Commercial Paper Funding Facility (CPFF), a program that the government had utilized during the Global Financial Crisis (GFC) to provide a liquidity backstop to domestic issuers of commercial paper (CP). As with the first iteration of the program, the Federal Reserve Bank of New York (FRBNY) funded a special purpose vehicle (SPV) to purchase highly rated, US dollar-denominated CP, …
South Korea: Corporate Liquidity Support Organization, Lily S. Engbith
South Korea: Corporate Liquidity Support Organization, Lily S. Engbith
Journal of Financial Crises
The spread of the COVID-19 pandemic in the early months of 2020 strained liquidity in short-term corporate funding markets around the world. In response, the Korean government enacted a variety of direct and indirect measures to promote the smooth flow of credit to households and businesses. Most of these measures focused on highly rated companies. Recognizing the need to extend assistance to lower-rated issuers, the Bank of Korea (BoK) invoked its authority under Article 80 of the Bank of Korea Act to establish and fund the Corporate Liquidity Support Organization, Co., Ltd., a special-purpose vehicle (SPV) authorized to purchase up …
Canada: Provincial Money Market Purchase Program, Lily S. Engbith
Canada: Provincial Money Market Purchase Program, Lily S. Engbith
Journal of Financial Crises
In response to the COVID-19 crisis in early 2020, the Bank of Canada (BoC) enacted wide-ranging measures to support the flow of credit to individuals, firms, and municipalities. On March 24, 2020, the BoC established the Provincial Money Market Purchase Program (PMMPP) to address liquidity strains in provincial funding markets. The BoC initially committed to purchasing up to 40% of each offering of directly issued provincial money market securities with terms of 12 months or less, including provincial treasury bills and short-term promissory notes. All Canadian provinces were eligible for participation in the program. The program's utilization peaked at 7.6 …
Canada: Commercial Paper Purchase Program, Lily S. Engbith
Canada: Commercial Paper Purchase Program, Lily S. Engbith
Journal of Financial Crises
In response to the onset of the COVID-19 crisis in early 2020, the Bank of Canada (BoC) enacted a wide-ranging program of monetary measures intended to support the flow of credit to individuals, firms, and municipalities. On March 27, 2020, the BoC announced the establishment of the Commercial Paper Purchase Program (CPPP), a liquidity facility designed to purchase highly rated commercial paper (CP), including asset-backed CP, from Canadian incorporated firms, municipalities, and provincial agencies. The BoC funded the program using settlement balances, and it retained several private firms to manage the asset purchases and liaise with issuers. Although firms took …
The Commercial Paper Funding Facility (U.S. Gfc), Rosalind Z. Wiggins
The Commercial Paper Funding Facility (U.S. Gfc), Rosalind Z. Wiggins
Journal of Financial Crises
In mid-September 2008, prime money market mutual funds (MMMFs) began experiencing run-like redemption requests sparked by one fund that had “broken the buck” because of large exposure to Lehman Brothers commercial paper (CP). As a result, MMMFs, which are significant investors in CP, became reluctant to hold CP. Within a week, outstanding CP had been reduced by roughly $300 billion. The CP market experienced severe shortening of maturities and increased rates, making it difficult for issuers to place new paper. When government efforts to assist the MMMFs did not resolve the stresses in the CP market, the Federal Reserve announced, …