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The Fed creates commercial paper−buying facility
Tue, Oct 7 2008, 14:15 GMT
by Marina Schiaffino
FXstreet.com International Traders Conference
ITC Barcelona 09 - Oct. 14-16 with Rob Booker, Valeria Bednarik, James Chen, Kim Cramer Larsson, Markus Heitkoetter, Ashraf Laidi and Andrei Pehar.
The Fed has just announced its plan to create a special fund to buy up commercial paper. Once the Treasury Department approves it, it will apply this new regulation in order to keep the credit crunch from cutting off a key source of funding for corporations.
Another emergency move, in order to calm distressed financial markets by preventing "substantial disruptions" to the financial markets and to the economy.
- Read the official statement at the Fed
In-Depth Analysis
- Mid-Day Forex Technical Report -Fed to Buy Commercial Paper by Action Forex
- Research US - CP market and money markets gridlocked by Danske Bank
Related News
- FXNEWS-A return to 1980s plain vanilla lending (Thomson Financial News)
- US RATE FUTURES-Slide on Fed commercial paper move (Thomson Financial News)
- FXNEWS-Fed's CP measures will boost confidence (Thomson Financial News)
- FOREX-Euro rises 3 pct vs yen after Fed creates facility (Thomson Financial News)
- FINEWS-Fed pulls new lever to address credit crisis (Thomson Financial News)
- U.S. crude futures up $5 on Iran, Fed action (Thomson Financial News)
- FXNEWS-Fed action to help risk appetite (Thomson Financial News)
- Euro And Dollar Gain; Fed CP Announcement Encourages Risk (Dow Jones)
- US stock futures jump on Fed commercial paper facility (Thomson Financial News)
- FXNEWS-EU fin mins pledge to protect banks, deposits (Thomson Financial News)
- FOREX-Dollar jumps vs yen after Fed creates facility (Thomson Financial News)
- FXNEWS-Comment on Fed move to backstop commercial paper (Thomson Financial News)
- FXNEWS - Fed creates commercial paper buying facility (Thomson Financial News)
- UPDATE 1-US Fed creates commercial paper-buying facility (Thomson Financial News)
- US Fed creates commercial paper-buying facility (Thomson Financial News)
- Fed to buy commercial paper in effort to boost liquidity (Thomson Financial News)
- US STOCKS-Futures drop after Fed auction statement (Thomson Financial News)
Analyst comments
- Chris Turner, head of FX strategy at ING
"The issue here is one of institutions struggling to access dollar funding in the overnight uncollateralized market and instead attempting to raise dollar funding through the FX swap or FX cross currency basis swap market." - Dow Jones - Cary Leahey, economist at Decision Economics
"Once again the Fed continues to pull all the levers it can think of and it's thought of a new one in the form of effectively accepting unsecured paper - commercial paper - from a wide variety of institutions. Up until today, the Fed did not make loans without some form of collateral. That has now gone out the window." - Thomson Financial News
Published on Tue, Oct 7 2008, 15:15 GMT
Archive
- The Fed creates commercial paper−buying facility
Published On Tue, Oct 7 2008, 14:15 GMT - Europe reacts to the global crisis
Published On Tue, Oct 7 2008, 09:11 GMT - Will there be a European Bailout plan?
Published On Mon, Oct 6 2008, 06:53 GMT - The US House approves the Financial Bailout plan
Published On Fri, Oct 3 2008, 17:35 GMT - The Bailout Plan: 2 rounds done, one to go
Published On Fri, Oct 3 2008, 10:46 GMT
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