Summary
- Established a Money Market Mutual Fund Liquidity Facility (MMLF) in support for the flow of credit to households and businesses by enhancing the liquidity and functioning of crucial money markets.
- MMLF is expected to be extended through September 30, 2020.
- MMLF intends to meet demands for redemptions by households and other investors, enhancing overall market functioning and credit provision to the broader economy.
- Federal Reserve Bank of Boston (“Reserve Bank”) would lend to eligible borrowers, taking as collateral the following types of assets purchased by the borrower from Funds.
- U.S. Treasuries & Fully Guaranteed Agencies;
- Securities issued by U.S. Government Sponsored Entities;
- Asset-backed commercial paper that is issued by a U.S. issuer, is rated A1, F1, or P1 r better; or
- Unsecured commercial paper that is issued by a U.S. issuer, is rated not lower than A1, F1, or P1
Click here for the complete release.