(describing expiration or closing of MMIFF
, AMLF, CPFF, and TSLF
was planned to lend to private sector SPVs that
(12.) The Federal Reserve also made funds available to lend to the money market, through the MMIFF
for money market funds, and through the AMLF programs for banks to finance purchases from money market funds.
Industry members also report, however, that the lack of participation is due to an unwillingness to take on the credit-risk exposure inherent in the structure of the MMIFF
. While money market funds can sell instruments into the MMIFF
, they receive only 90 percent of their value, with the additional 10 percent made up of asset-backed commercial paper issued by the MMIFF
to the participating money market fund.
assets eligible to be sold to the MMIFF
," so that the program could
The changes to the MMIFF
involve expansion of the facility's eligible participants.
On October 21, 2008, the Fed announced the creation of the Money Market Investor Funding Facility (MMIFF
), and pledged to lend it up to $540 billion.
will lend to private sector SPVs that invest in
The Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF) and the Money Market Investor Funding Facility (MMIFF
) served as liquidity backstops for regulated and unregulated money market intermediaries, respectively (step 7).
the announcement of the Money Market Investor Funding Facility (MMIFF
) on October 21;
For example, several of the new facilities introduced by the Federal Reserve in the current crisis are available at the discretion of market participants (the PDCF, AMLF, CPFF, MMIFF
, and TALF), while others appear to have been structured to encourage market intermediation of credit.
These include the TALF, the Commercial Paper Funding Facility (CPFF), and the Money Market Mutual Fund Investor Funding Facility (MMIFF