Fed announces Commercial Paper Funding Facility program - CPFF

14 October 2008

The Federal Reserve announced a program to finance the purchase of unsecured and asset-backed commercial paper from eligible issuers through its primary dealers. 

The Federal Reserve has announced further details of its purchase programme of commercial papers, which provides a broad backstop for the commercial paper market. Beginning on 27 October, the CPFF will fund purchases of commercial paper of 3 month maturity from high-quality issuers. 

 

Under the CPFF, the Federal Reserve Bank of New York will finance the purchase of unsecured and asset-backed commercial paper from eligible issuers through its primary dealers. The CPFF will finance only highly rated, U.S. dollar-denominated, three-month commercial paper.

 

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