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5.13. - Page 53 of 59 <br />Federal Reserve Pulls Out All the Stops with New Liquidity Programs (Ctd.) <br />Date <br />Program <br />ProgramPurpose <br />Acronym <br />3/23/2020 <br />PMCCF <br />Primary Market <br />Funding backstop for <br />• SPV purchases investment grade corporate bonds <br />Corporate Credit <br />investment grade <br />directly from eligible issuers <br />Facility <br />corporate debt <br />• Eligible assets: new issue investment grade corporate <br />debt with remaining maturity of four years or less <br />• Rate informed by market conditions <br />• Program runs through 9/30/2020 <br />3/23/2020 <br />SMCCF <br />Secondary Market <br />Enhance market liquidity <br />• SPV will purchase individual investment grade corporate <br />Corporate Credit <br />for outstanding <br />bonds and investment grade corporate bond ETFs in the <br />Facility <br />investment grade <br />secondary market <br />corporate bonds <br />• Eligible individual corporate bonds: investment grade <br />corporate debt with remaining maturity of five years or <br />less <br />• Pricing: fair market value in the secondary market <br />• Program runs through 9/30/2020 <br />3/23/2020 <br />TALF <br />Term Asset- <br />Funding backstop to <br />• SPV will initially make $100 billion in 3 year, non - <br />Backed Securities <br />facilitate the issuance of <br />recourse loans available to holders of eligible ABS <br />Loan Facility <br />eligible ABS <br />• Eligible collateral: AAA -rated ABS backed by newly and <br />recently originated consumer and small business loans <br />• Pricing: 2 or 3 year LIBOR swap rate + 100 bps* <br />• Program runs through 9/30/2020 <br />Source: Federal Reserve. <br />*2 year LIBOR swap rate if underlying credit exposure with no government guarantee and WAL of 2 years or less; 3 year LIBOR swap rate if underlying credit <br />exposure with no government guarantee and WAL of 2 years or greater. <br />© PFM <br />62 <br />