NEW: Major expansion of Fed lending facilities
$500 billion for municipal credit
TALF expanded to include AAA CMBS and AAA CLOs
Corporate credit extended to include fallen angels
$600 billion for loans to midsize businesses
wsj.com/articles/fed-a…
$500 billion for municipal credit
TALF expanded to include AAA CMBS and AAA CLOs
Corporate credit extended to include fallen angels
$600 billion for loans to midsize businesses
wsj.com/articles/fed-a…
The Fed says these programs will provide $2.3 trillion in lending, and they are supported by $185 billion in new Treasury support
Muni facility will purchase up to $500 billion of short term notes directly from U.S. states, District of Columbia, U.S. counties with a population of at least two million residents, and U.S. cities with a population of at least one million residents.
The Main Street Lending Program will offer through banks four-year loans to companies employing up to 10,000 workers or with revenues of less than $2.5 billion that were in good financial standing before the crisis
Treasury kicks in another $50B for the primary corporate credit facility and $25B for the secondary corporate credit facility. Firms that were BBB-rated on March 22 but are now BB can participate. Some high-yield ETFs are now eligible for the latter federalreserve.gov/newsevents/pre…
Treasury kicks in $35 billion for the muni facility. Eligible Notes are tax anticipation notes, tax and revenue anticipation notes, bond anticipation notes, and other similar notes with maturities of less than 24 months. federalreserve.gov/newsevents/pre…
