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The U.S. Federal Government has On September 19, 2008, the Federal Reserve established a lending program that provides funding at favorable rates to banks and other financial institutions, to enable them to purchase high-quality ABCP from eligible 2a-7 money market funds. While the program has evolved since details were first announced, the ABCP purchase program represents an effort to restore liquidity to the ABCP market, increasing the amount of liquid assets money fund portfolio managers have on hand to meet withdrawals. (Source: Evergreen Investments Market Flash 10-30-08)
MONEY MARKET INVESTOR FUNDING FACILITY
The U.S. Federal Government has On October 21, 2008, the Federal Reserve also created the Money Market Investor Funding Facility (MMIFF). The MMIFF will finance the purchase of commercial paper with remaining maturities of 90 days or less that is held in eligible 2a-7 money market funds and has been issued by highly rated financial institutions. (Source: Evergreen Investments Market Flash 10-30-08)
COMMERCIAL PAPER FUNDING FACILITY
The Federal Reserve has also developed an additional program related to the purchase of short-term debt instruments. This program, which is intended to provide a liquidity backstop to issuers of commercial paper, should not be confused with the money market support structures discussed above. Under the terms of that program, called the Commercial Paper Funding Facility (CPFF), the Federal Reserve Bank of New York will finance the purchase of highly-rated unsecured and asset-backed commercial paper from eligible issuers via eligible primary dealers. (Source: Evergreen Investments Market Flash 10-30-08)