Summary

  • This Press Release intends to summarize the most recent Federal Reserve monetary policies and Banking and Consumer Regulatory policies to support households, businesses, and the U.S. economy overall during the COVID-19 pandemic crisis.
  • $700 billion purchase of Treasury securities and agency mortgage-backed securities
  • $300 billion in new financing facilities plus additional Treasury, using the Exchange Stabilization Fund (ESF), $30 billion in equity to these facilities to support the flow of credit to employers, consumers, and businesses
  • Set up Primary Market Corporate Credit Facility (PMCCF) for new bond and loan issuance. PMCCF will allow companies access to credit so that they are better able to maintain business operations and capacity during the period of dislocations related to the pandemic. This facility is open to investment grade companies and will provide bridge financing of four years.
  • Set up Secondary Market Corporate Credit Facility (SMCCF) to provide liquidity for outstanding corporate bonds.  SMCCF will make purchase in the secondary market corporate bonds issued by investment grade U.S. companies and U.S.-listed exchange-traded funds (ETFs) whose investment objective is to provide broad exposure to the market for U.S. investment grade corporate bonds.
  • Set up Term Asset-Backed Securities Loan Facility (TALF), to enable the issuance of asset-backed securities (ABS) backed by student loans, auto loans, credit card loans, loans guaranteed by the Small Business Administration (SBA)
  • Expend the Money Market Mutual Fund Liquidity Facility (MMLF) to include a wider range of securities, including municipal variable rate demand notes (VRDNs) and bank certificates of deposit.
  • Expand the Commercial Paper Funding Facility (CPFF) to include high-quality, tax-exempt commercial paper as eligible securities.

Click here for the complete release.