Commercial Paper Funding Program (CPFP)

Commercial Paper Funding Program (CPFP),

Definition of Commercial Paper Funding Program (CPFP):

  1. The SPVs were financed directly by the Federal Reserve Bank of New York and were used to purchase three-month commercial paper, both secured and unsecured. This financing was then to be secured by the assets placed into the SPVs and also by the fees paid by issuers of unsecured paper. The U.S. Treasury department felt that the program was required in order to prevent further substantial disruption of the financial markets.

  2. A program instituted in October of 2008 that created the Commercial Paper Funding Facility (CPFF). The Commercial Paper Funding Program (CPFP) was designed to increase the liquidity of the commercial paper market by providing funding to issuers. The program specifically provided a backup measure of liquidity for commercial paper issuers via a Special Purpose Vehicle (SPV).

  3. The Commercial Paper Funding Facility (CPFF) was created in October 2008 as part of a program which was designed to increase the liquidity of the commercial paper market. The program provides funding to issuers and serves as an additional backup measure of liquidity via a Special Purpose Vehicle (SPV), which provides commercial borrowers easier access to funding.

Meaning of Commercial Paper Funding Program (CPFP) & Commercial Paper Funding Program (CPFP) Definition