Commercial Paper Funding Facility (CPFF)

Definition:

In 2008, the Federal Reserve offered to purchase highly rated, three-month commercial paper in response to difficulty companies had raising money in the commercial paper market. The goals were to persuade investors to lend to top-tier companies and give borrowers a backstop if funds can't be obtained in the open market. The CPFF began operations on Oct. 27, 2008, and closed on Feb. 1, 2010.

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

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