Fred Assets Other Repurchase Agreements

21. září 2021 | Vít Zemčík | Nezařazené | Sdílet na Facebooku

The Federal Reserve Bank of New York (FRBNY) and the Federal Reserve Bank of Boston (FRBB) have granted loans to limited liability companies pursuant to Section 13(3) of the Federal Reserve Act. On April 14, 2020, FRBNY began lending to the Commercial Paper Funding Facility II LLC (CPFF II LLC), a limited liability company established to acquire three months of U.S. dollar-denominated commercial paper from eligible issuers. The assets of CPFF II LLC and the amount made available to the FRBNY by the U.S. Treasury as credit protection are used by FRBNY to secure the loan. On May 12, 17, 2020, FRBNY began granting loans to Corporate Credit Facilities LLC (CCF LLC), a limited liability company established to acquire bonds or portions of syndicated loans or eligible bonds upon issuance through primary Market Credit Facility and acquire individual bonds and exchange-traded funds through the Second Tier Corporate Credit Facility. The assets of CCF LLC and the amount made available by the U.S. Treasury as credit protection for the FRBNY are used to insure the loan of the FRBNY. On June 5, 2020, FRBNY began lending to the Municipal Liquidity Facility LLC (MLF LLC), a limited liability company created to purchase municipal bonds from eligible issuers. The assets of MLF LLC and the amount made available by the U.S. Treasury as credit protection for the FRBNY are used by FRBNY to secure the loan.

On June 25, 2020, FRBNY began lending to TALF II LLC, a special purpose vehicle created to support credit flows to consumers and businesses. The assets of TALF II LLC and the amount that the U.S. Treasury makes available to the FRBNY as credit protection are used to secure the loan by the FRBNY. On July 15, 2020, FRBB began lending to MS Facilities LLC (Main Street Lending Program), an allocation agency created to ensure credit flows to eligible small and medium-sized businesses and non-profit organizations. The assets of MS Facilities LLC and the amount that the U.S. Treasury makes available to FRBB as credit protection are used by FRBB to secure the loan. Quantitative easing (QE) is an unconventional monetary policy in which a central bank buys government bonds or other securities from the market in order to reduce interest rates and increase the money supply. The use of the Fed`s balance sheet by quantitative easing remains somewhat controversial. While these efforts certainly helped alleviate banks` liquidity problems during the financial crisis, critics argue that QE was a huge disadvantage and distortion of free market principles. Today, markets are still sorting out the bump in the short term, but the longer-term side effects of government intervention. We are all linked in one way or another to the Fed`s balance sheet.

The currencies we hold are Fed debts…

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