Fed fires another bullet: Establishes commercial paper funding facility

With the commercial paper market all but closed up, the Fed decides not wait until the end of its two-day meeting tomorrow, and establishes a Commercial Paper Funding Facility.

“The CPFF will provide a liquidity backstop to U.S. issuers of commercial paper through a special purpose vehicle that will purchase unsecured and asset-backed commercial paper rated A1/P1 (as of March 17, 2020) directly from eligible companies.”

The move was made with the approval of the Treasury Secretary.

Markets are adding a bit to gains – the S&P 500 now higher by 2.6%. The Dow is lagging, up just 0.7% as a 15% decline in Boeing weighs.

https://seekingalpha.com/news/3552543-fed-fires-another-bullet-establishes-commercial-paper-funding-facility