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Aug 17 (Reuters) - The U.S. Federal Reserve said on Monday
it would extend a multibillion-dollar emergency program to
support the flow of credit to commercial property, consumers
and small businesses until next year.
The Term Asset Backed Securities Loan Facility (TALF),
which was to expire at the end of December, will be kept open
until the end of March for asset-backed securities based on
consumer and small business loans and for legacy commercial
mortgage backed securities (CMBS).
New CMBS, because they take a significant time to arrange,
will be eligible for TALF support until the end of June 2010.
Below are brief descriptions of the programs put in place
so far to ease credit strains and support the economy:
TERM ASSET-BACKED SECURITIES LOAN FACILITY (TALF):
The TALF aims to revive securitization markets in the hope
of spurring consumer and small business lending, as well as to
commercial real estate.
The Fed has pledged to lend an initial $200 billion under
TALF, with the U.S. Treasury pitching in $20 billion to cover
credit risks. However, officials have said the program could
grow to $1 trillion. On Aug. 17 is was extended until March 31,
2010 for asset backed securities and legacy CMBS and on June
30, 2010 for new CMBS.
FX CURRENCY SWAP LINES WITH OTHER CENTRAL BANKS:
The Fed -- the U.S. central bank -- has set up currency
swap lines with 14 other central banks so they have U.S.
dollars to lend in their markets. On June 25 the Fed extended
the life of the arrangements by three months to Feb. 1, 2010.
DISCOUNT WINDOW:
The discount window is the Fed's traditional way of
providing liquidity to U.S. banks against collateral. When the
Fed cut its overnight interbank federal funds target rate to
between zero and 0.25 percent in December, it cut the rate on
loans from the discount window to 0.5 percent.
TREASURY PURCHASE PROGRAM:
In March the Fed said it would buy up to $300 billion of
Treasury securities over six months. In August it said the pace
of these purchases would be slowed to eke them out until the
end of October. As of Aug. 11, the Fed had bought about $233
billion worth of Treasury securities.
MORTGAGE-BACKED SECURITIES PURCHASE PROGRAM:
The Fed in November 2008 said it would buy $100 billion in
the debt of government-sponsored enterprises Fannie Mae
(FNM.P), Freddie Mac (FRE.P) and the Federal Home Loan banks --
and $500 billion in mortgage-based securities backed by Fannie
Mae, Freddie Mac and Ginnie Mae. In March the Fed expanded
these programs by $850 billion to a total of $1.45 trillion. As
of Aug. 13, the Fed had bought about $741.6 billion of agency
MBS, and $111.04 billion of agency debt as of Aug. 14.
SHORING UP MONEY MARKET MUTUAL FUNDS (AMLF):
The Fed in September 2008 said it would make discount
window loans to financial institutions to allow them to buy
asset-backed commercial paper from money market mutual funds.
On June 25 the Fed extended the program to Feb. 1, 2010, from
Oct. 30, 2009.
COMMERCIAL PAPER FUNDING FACILITY (CPFF):
....
MONEY MARKET INVESTOR FUNDING FACILITIES (MMIFF):
...
PRIMARY DEALER CREDIT FACILITY (PDCF):
....
TERM SECURITIES LENDING FACILITY (TSLF):
...
TERM AUCTION FACILITY (TAF):
.....
TERM REPURCHASE AGREEMENTS:
..
PAYING INTEREST ON RESERVES:
...
OTHER TRADITIONAL TOOLS:
...
(Compiled by Reuters' Fed reporting team; Editing by James
Dalgleish)
http://www.reuters.com/article/marke...51559520090817
it would extend a multibillion-dollar emergency program to
support the flow of credit to commercial property, consumers
and small businesses until next year.
The Term Asset Backed Securities Loan Facility (TALF),
which was to expire at the end of December, will be kept open
until the end of March for asset-backed securities based on
consumer and small business loans and for legacy commercial
mortgage backed securities (CMBS).
New CMBS, because they take a significant time to arrange,
will be eligible for TALF support until the end of June 2010.
Below are brief descriptions of the programs put in place
so far to ease credit strains and support the economy:
TERM ASSET-BACKED SECURITIES LOAN FACILITY (TALF):
The TALF aims to revive securitization markets in the hope
of spurring consumer and small business lending, as well as to
commercial real estate.
The Fed has pledged to lend an initial $200 billion under
TALF, with the U.S. Treasury pitching in $20 billion to cover
credit risks. However, officials have said the program could
grow to $1 trillion. On Aug. 17 is was extended until March 31,
2010 for asset backed securities and legacy CMBS and on June
30, 2010 for new CMBS.
FX CURRENCY SWAP LINES WITH OTHER CENTRAL BANKS:
The Fed -- the U.S. central bank -- has set up currency
swap lines with 14 other central banks so they have U.S.
dollars to lend in their markets. On June 25 the Fed extended
the life of the arrangements by three months to Feb. 1, 2010.
DISCOUNT WINDOW:
The discount window is the Fed's traditional way of
providing liquidity to U.S. banks against collateral. When the
Fed cut its overnight interbank federal funds target rate to
between zero and 0.25 percent in December, it cut the rate on
loans from the discount window to 0.5 percent.
TREASURY PURCHASE PROGRAM:
In March the Fed said it would buy up to $300 billion of
Treasury securities over six months. In August it said the pace
of these purchases would be slowed to eke them out until the
end of October. As of Aug. 11, the Fed had bought about $233
billion worth of Treasury securities.
MORTGAGE-BACKED SECURITIES PURCHASE PROGRAM:
The Fed in November 2008 said it would buy $100 billion in
the debt of government-sponsored enterprises Fannie Mae
(FNM.P), Freddie Mac (FRE.P) and the Federal Home Loan banks --
and $500 billion in mortgage-based securities backed by Fannie
Mae, Freddie Mac and Ginnie Mae. In March the Fed expanded
these programs by $850 billion to a total of $1.45 trillion. As
of Aug. 13, the Fed had bought about $741.6 billion of agency
MBS, and $111.04 billion of agency debt as of Aug. 14.
SHORING UP MONEY MARKET MUTUAL FUNDS (AMLF):
The Fed in September 2008 said it would make discount
window loans to financial institutions to allow them to buy
asset-backed commercial paper from money market mutual funds.
On June 25 the Fed extended the program to Feb. 1, 2010, from
Oct. 30, 2009.
COMMERCIAL PAPER FUNDING FACILITY (CPFF):
....
MONEY MARKET INVESTOR FUNDING FACILITIES (MMIFF):
...
PRIMARY DEALER CREDIT FACILITY (PDCF):
....
TERM SECURITIES LENDING FACILITY (TSLF):
...
TERM AUCTION FACILITY (TAF):
.....
TERM REPURCHASE AGREEMENTS:
..
PAYING INTEREST ON RESERVES:
...
OTHER TRADITIONAL TOOLS:
...
(Compiled by Reuters' Fed reporting team; Editing by James
Dalgleish)
http://www.reuters.com/article/marke...51559520090817
I bet there are still some letters left in the alphabet and there is probably enough room left in the toolbox