Commercial Paper Funding Facility (CPFF)
The Commercial Paper Funding Facility (CPFF) is a Federal Reserve program that was created in 2008 to provide liquidity to the commercial paper market. The CPFF was established in response to the financial crisis of 2008 and was designed to provide a source of funding for issuers of commercial paper, which is a short-term debt instrument used by corporations to finance their operations. The CPFF was designed to provide a backstop for the commercial paper market, which had become illiquid due to the crisis.
History of the CPFF
The CPFF was created in response to the financial crisis of 2008, which had caused a liquidity crisis in the commercial paper market. The CPFF was designed to provide a backstop for the commercial paper market, which had become illiquid due to the crisis. The CPFF was established by the Federal Reserve in October 2008 and was initially set to expire in April 2009. However, the program was extended several times and eventually expired in February 2010.
The CPFF was designed to provide a source of funding for issuers of commercial paper. The program allowed the Federal Reserve to purchase commercial paper directly from issuers, providing them with a source of funding. The CPFF was also designed to provide liquidity to the commercial paper market, which had become illiquid due to the crisis.
Table of Comparisons
| Program | Purpose | Duration |
|---|---|---|
| CPFF | Provide liquidity to the commercial paper market | October 2008 – February 2010 |
Summary
The Commercial Paper Funding Facility (CPFF) was a Federal Reserve program that was created in 2008 to provide liquidity to the commercial paper market. The CPFF was designed to provide a backstop for the commercial paper market, which had become illiquid due to the crisis. The program allowed the Federal Reserve to purchase commercial paper directly from issuers, providing them with a source of funding. The CPFF was in effect from October 2008 to February 2010.
For more information about the CPFF, please visit the Federal Reserve’s website here.
See Also
- Federal Reserve
- Commercial Paper
- Liquidity
- Financial Crisis of 2008
- Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF)
- Term Auction Facility (TAF)
- Primary Dealer Credit Facility (PDCF)
- Money Market Investor Funding Facility (MMIFF)
- Term Securities Lending Facility (TSLF)
- Discount Window
