Publications

On March 17, 2020, the Federal Reserve Board announced the establishment of a Commercial Paper Funding Facility (“CPFF”) to support the flow of credit to households and businesses in light of the market instability resulting from the coronavirus disease 2019 outbreak. The CPFF will provide a liquidity backstop to U.S. issuers of commercial paper through a special purpose vehicle (“SPV”) that will purchase unsecured and asset-backed commercial paper rated A1/P1 (as of March 17, 2020) directly from eligible companies. The CPFF was established pursuant to section 13(3) of the Federal Reserve Act, which provides the Federal Reserve with emergency lending authority to nonfinancial companies through broad-based programs and facilities that relieve liquidity pressures in financial markets. The Federal Reserve Board previously implemented a similar commercial paper funding facility in October 2008 to support the commercial paper market during the Financial Crisis.