Fed moves to buy commercial paper

Debt issued by companies wll be bought by the US Federal Reserve via a special purpose vehicle, as the US central bank seeks to target direct financial support at commercial businesses in response to the Coronavirus crisis. The bank is setting up a Commercial Paper Funding Facility, which "will provide a liquidity backstop to US issuers of commercial paper through a special purpose vehicle that will purchase unsecured and asset-backed commercial paper rated A1/P1 (as of March 17, 2020) directly from eligible companies." "The CPFF program is established by the Federal Reserve under the...