Term Securities Lending Facility (TSLF) and TSLF Options Program (TOP)
General Explanation
The Term Securities Lending Facility (TSLF) and TSLF Options Program (TOP) are two programs created by the Federal Reserve Board (FRB) to provide liquidity to the financial markets during times of stress. The TSLF program was created in March 2008 in response to the financial crisis of 2007-2008. It allowed primary dealers to borrow Treasury securities from the FRB in exchange for other securities, such as mortgage-backed securities. The TOP program was created in October 2008 and allowed primary dealers to borrow Treasury securities from the FRB in exchange for other securities, such as corporate bonds. Both programs were designed to provide liquidity to the financial markets and to help stabilize the economy.
History
The TSLF program was created in March 2008 in response to the financial crisis of 2007-2008. The program allowed primary dealers to borrow Treasury securities from the FRB in exchange for other securities, such as mortgage-backed securities. The program was designed to provide liquidity to the financial markets and to help stabilize the economy. The program was initially set to expire in January 2009, but was extended several times until it was finally terminated in February 2010.
The TOP program was created in October 2008 and allowed primary dealers to borrow Treasury securities from the FRB in exchange for other securities, such as corporate bonds. The program was designed to provide liquidity to the financial markets and to help stabilize the economy. The program was initially set to expire in January 2009, but was extended several times until it was finally terminated in February 2010.
Comparison Table
| Program | Type of Security | Expiration Date |
|---|---|---|
| TSLF | Mortgage-backed securities | February 2010 |
| TOP | Corporate bonds | February 2010 |
Summary
The Term Securities Lending Facility (TSLF) and TSLF Options Program (TOP) were two programs created by the Federal Reserve Board (FRB) to provide liquidity to the financial markets during times of stress. The TSLF program allowed primary dealers to borrow Treasury securities from the FRB in exchange for other securities, such as mortgage-backed securities. The TOP program allowed primary dealers to borrow Treasury securities from the FRB in exchange for other securities, such as corporate bonds. Both programs were designed to provide liquidity to the financial markets and to help stabilize the economy. For more information about these programs, please visit the Federal Reserve Board’s website.
See Also
- Federal Reserve Board
- Primary Dealers
- Treasury Securities
- Mortgage-backed Securities
- Corporate Bonds
- Financial Crisis of 2007-2008
- Liquidity
- Stabilization
- Monetary Policy
- Federal Funds Rate
