Special Alert | Commercial paper funding facility commences

The CPFF launched on April 14, 2020

Amy S. Matsuo

Amy S. Matsuo

Regulatory and ESG Insights Leader, KPMG US

+1 919-664-7100

The Commercial Paper Funding Facility (CPFF) launched on April 14, 2020.

The CPFF will provide a liquidity backstop to U.S. issuers of commercial paper through a special purpose vehicle (SPV). The SPV will purchase eligible three-month unsecured commercial paper and asset-backed commercial paper (ABCP) from eligible issuers using financing provided by the Federal Reserve Bank of New York (FRBNY). The SPV will hold the commercial paper until maturity and will use the proceeds from maturing commercial paper and other assets of the SPV to repay its loan from the New York Fed.

Eligible issuers must register with the CPFF in order to sell commercial paper to the SPV.

Links to the registration materials, updated frequently asked questions, program terms and conditions, and a sign-up page to receive email alerts for daily CPFF rates, are all available here.


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