The Federal Reserve has extended the deadline for its existing liquidity programmes by six months, to October 30, in a sign of continuing strain on financial markets.The programmes include the Money Market Investor Funding Facility, a $540 billion fund created in October 2008 to relieve ailing money market funds; the Primary Dealer Credit Facility, which provides discount window loans to primary dealers; the Term Securities Lending Facility, under which the Federal Reserve Bank of New York auctions term loans of Treasury securities to primary dealers; the Commercial Paper Funding Facility, which provides a liquidity backstop to US issuers of commercial paper; and the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, which provides loans to depositary institutions to purchase asset-backed commercial paper and money market mutual funds.
The Fed has also extended its reciprocal currency arrangements (swap lines) with 13 other central banks until October 30 in an effort to address continuing pressure in US dollar funding markets.
The current expiration date for the Term Asset-Backed Securities Loan Facility (TALF), which supports the issuance of collateralised asset-backed securities, remains December 31. The Fed's other liquidity facilities, such as the Term Auction Facility, do not have a fixed expiry date.
Topics: Federal Reserve
More on Structured Products
Provisions on documentation eased but industry says more work needed on advertising rules
UBS bolsters New York equities desk, among other moves in June
Product will pay 5.95% annually if FTSE 100 or Euro Stoxx 50 are above 65% barrier on coupon date
Lack of liquid options on European mid-cap benchmarks leaves investors stuck with the blue chips
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.