Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF)

Definition:

Launched by the Federal Reserve on September 2008, this program was designed to restore confidence to the market for asset-backed commercial paper. Money-market funds, fearing they couldn't sell these securities to meet redemptions, had stopped buying asset-backed commercial paper. Under AMLF, the Fed loaned money to banks to buy up all of the asset-backed commercial paper that a money-market fund wanted to sell.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Hidden load

A sales charge that is not explicitly disclosed or is buried in the fine print of a mutual fund prospectus or life insurance policy and therefore is not immediately apparent.

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