Court filing
Periodic Report: Update on Outstanding Lending Facilities — August 8, 2020
Record facts
| Court | Board of Governors of the Federal Reserve System |
|---|---|
| Filed | 2020-08-08 |
Summary
A periodic report of the Board of Governors of the Federal Reserve System dated August 8, 2020, updating two congressional committees on lending facilities authorized under section 13(3) of the Federal Reserve Act (12 U.S.C. § 343). It gives the first periodic update on the Nonprofit Organization New Loan Facility and the Nonprofit Organization Expanded Loan Facility, and further updates on facilities including the Primary Dealer Credit Facility, the Paycheck Protection Program Liquidity Facility and the Main Street Lending Program, with figures as of July 31, 2020. It reports total outstanding advances under the PPPLF of $70,714,837,465, with collateral pledged in the same amount. It notes that the Board will report on all 13 facilities at least every 30 days and that the nonprofit facilities were not yet operational as of July 31, 2020.
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Periodic Report:Update on Outstanding Lending Facilities
Authorized by the Board under Section 13(3) of the Federal Reserve Act
August 8, 2020
Overview
The Board of Governors of the FederalReserve System (Board) is providing
the following updates concerning certain lending facilities established by the Board
under section 13(3) of the Federal Reserve Act (12 U.S.C. § 343). Pursuant to
section 13(3)(C) of the Federal Reserve Act, the Board must provide the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives (the
Committees) an initial report regarding each facility established under
section 13(3) and periodic updates at least every 30 days thereafter. This report
provides the first periodic update on the Nonprofit Organization New Loan Facility
(NONLF) and the Nonprofit Organization Expanded Loan Facility (NOELF) and
the next periodic update on the Primary Dealer Credit Facility (PDCF), the Money
Market Mutual Fund Liquidity Facility (MMLF), the CommercialPaper Funding
Facility (CPFF), the Primary Market Corporate Credit Facility (PMCCF), the
Secondary Market Corporate Credit Facility (SMCCF), the Term Asset-Backed
Securities Loan Facility (TALF), the Municipal Liquidity Facility (MLF), the
Paycheck Protection Program Liquidity Facility (PPPLF), the Main Street New
Loan Facility (MSNLF), the Main Street Expanded Loan Facility (MSELF), and
the Main Street Priority Loan Facility (MSPLF).1 The Board will provide periodic
updates concerning these facilities at least every 30 days, in accordance with
section 13(3) of the Federal Reserve Act.
A. Primary DealerCredit Facility
On March 17, 2020, the Board authorized the Federal Reserve Bank of
New York (FRBNY) to establish and operate the PDCF. The PDCFis a term
1 On July 23, 2020, the Board provided its initial report regarding the NONLF and NOELF. On
August 5, 2020, the Board provided its third periodic update on the MSPLF and fourth periodic
update on the MSNLF and MSELF. Although 30 days have not passed since the July 23, 2020,
and August 5, 2020, reports, providing an update on the MSNLF, MSELF, MSPLF, NONLF,
and NOELF to Congress on August 8, 2020, as of July 31, 2020, will synchronize the reporting
of these facilities at the end of the month, thereby promoting transparency and facilitating
standardized monthly reporting. The Board previously aligned the “as of” date for the PDCF,
MMLF, CPFF, PMCCF, SMCCF, TALF, MLF, and PPPLF. The Board will provide reports
about all 13 facilities to the Committees at least every 30 days.
1
loan facility that provides funding to primary dealers in exchange for a broad
range of collateral and is intended to foster the functioning of financial markets
more generally. The facility allows primary dealers to support smooth market
functioning and facilitate the availability of credit to businesses and households.
Additional information concerning the PDCF can be found on the Board’s public
website at https://www.federalreserve.gov/monetarypolicy/pdcf.htm.
Update. As of July 31, 2020:
The total outstanding amount of the FRBNY’s loans under the
PDCF was $1,187,600,000.
The total value of the collateral pledged to the FRBNY was
$1,351,361,782.
The amount of interest, fees, and other revenue or items of value
received by the FRBNY, reported on an accrual basis, was
$12,241,219.
As described in the Board’s initial report to Congress regarding the
PDCF, the PDCF includes features that are intended to mitigate risk
to the Federal Reserve. TheBoard continues to expect that the
PDCF will not result in losses to the Federal Reserve.
B. Commercial PaperFunding Facility
On March 17, 2020, the Board authorized the FRBNY to establish and
operate the CPFF. The purpose of the CPFF is to provide liquidity to short-term
funding markets. The CPFF provides a liquidity backstop to U.S. issuers of
commercial paper, including municipalities, by purchasing three-month unsecured
and asset-backed commercialpaper directly from eligible issuers. On July 23,
2020, the Board adopted a revised term sheet for the CPFF, reflecting a change to
the following term:
Assets of the SPV. The term sheet was updated to indicate that the CPFF will
purchase three-month U.S. dollar-denominated commercialpaper from eligible
issuers through a broader set of counterparties (CPFF Dealers) than the FRBNY’s
primary dealers.
Additional information concerning the CPFF, and who is eligible to be a
CPFF Dealer, can be found on the Board’s public website at
https://www.federalreserve.gov/monetarypolicy/cpff.htm.
2
Update. As of July 31, 2020:
The outstanding amount of the FRBNY’s loans to the special purpose
vehicle (SPV) was $335,736,745.
The total outstanding amount of the commercial paper held by the
SPVwas $336,608,890.
The total value of the collateral pledged to secure the FRBNY’s loan
to the SPV was $10,396,455,126.2
The amount of interest, fees, and other revenue or items of value
received by the FRBNY, reported on an accrual basis, was
$1,043,413.
The amount of interest, fees, and other revenue or items of value
received by the SPV, reported on an accrualbasis, was $28,814,580.
As described in the Board’s initial report to Congress regarding the
CPFF, the CPFF includes features that are intended to mitigate risk to
the Federal Reserve. TheBoard continues to expect that the CPFF
will not result in losses to the FederalReserve.
C. Money Market Mutual Fund Liquidity Facility
On March 18, 2020, the Board authorized the Federal Reserve Bank of
Boston (FRBB) to establish and operate the MMLF. TheMMLF provides
funding to U.S. depository institutions and bank holding companies to finance
their purchases of certain types of assets from money market mutual funds under
certain conditions. The program is intended to assist money market mutual funds
that hold such paper in meeting demands for redemptions by investors and to
foster liquidity in the markets for the assets held by money market mutualfunds,
including the market for short-term municipal securities. Additional information
concerning the MMLF can be found on the Board’s public website at
https://www.federalreserve.gov/monetarypolicy/mmlf.htm.
Update. As of July 31, 2020:
The total outstanding amount of the FRBB’s loans under the MMLF
was $13,687,711,642.
The total value of the collateral pledged to secure the FRBB’s loans
was $13,692,548,813. In addition, the Department of the Treasury
is providing $10 billion as credit protection to the FRBB.
The amount of interest, fees, and other revenue or items of value
2 Includes $10 billion equity investment from the Department of the Treasury.
3
received by the FRBB, reported on an accrual basis, was
$145,808,180.
As described in the Board’s initial report to Congress regarding the
MMLF, the MMLF includes features that are intended to mitigate
risk to the Federal Reserve. The Board continues to expect that the
MMLF will not result in losses to the Federal Reserve.
D. Corporate Credit Facilities
The Board has established two facilities to support credit to large
employers—the PMCCF for new bond and loan issuance and the SMCCF to
provide liquidity for outstanding corporate bonds (together, corporate credit
facilities, or the CCFs). The FRBNYhas established one SPV to manage and
operate the CCFs. This section provides aggregate information about the CCFs.
Additional information about the CCFs can be found on the Board’s public
website at https://www.federalreserve.gov/monetarypolicy/pmccf.htm and
https://www.federalreserve.gov/monetarypolicy/smccf.htm.
Update. As of July 31, 2020:
The total outstanding amount of the FRBNY’s loans under the CCFs
was $12,022,551,378.3 All loans were extended under the SMCCF.
The total value of the collateral pledged to secure the FRBNY’s
loans to the SPV was $49,861,644,211.4
The total amount of interest, fees, and other revenue received by the
SPVwith respect to the CCFs, reported on an accrual basis, was
$38,284,513.
The total amount of interest, fees, and other revenue or items of
value received by the FRBNY with respect to the CCFs, reported on
an accrual basis, was $1,526,030.
3 Loans are extended to the SPV by the FRBNY on the basis of settled securities purchase
transactions.
4 Includes the market value of exchange-traded fund holdings under the SMCCF in the amount
of $8,735,723,499 and the amortized cost of corporate bonds purchased under the SMCCF in the
amount of $3,553,096,999, each of which is the recorded value of transactions that have reached
their contractual settlement date as of July 31, 2020. As of July 31, 2020, no transactions had yet
closed under the PMCCF. For purposes of this report, the value of collateral has been reduced
by the total proceeds of trades that have not reached their contractual settlement date
($21,870,075); see also supra, n.3. Also includes equity investment from the Department of the
Treasury and related reinvestment earnings of $37,506,302,588; cash equivalents of
$35,872,686; and interest and other miscellaneous receivables of $30,648,439.
4
As described in the Board’s initial report to Congress regarding the
CCFs, the CCFs include features that are intended to mitigate risk to
the Federal Reserve. TheBoard continues to expect that the CCFs
will not result in losses to the FederalReserve.
Additional transaction-specific disclosures regarding the SMCCF may be
found in the attached spreadsheet (Spreadsheet A). As of July 31, 2020, the
PMCCF was operationalbut had not yet closed any transactions. Accordingly,
there are no transaction-specific disclosures for the PMCCF.
E. Term Asset-Backed Securities Loan Facility
On March 22, 2020, the Board authorized the FRBNY to establish and
operate the TALF. Under the TALF, the FRBNY will lend to an SPV, which will
make loans to U.S. companies secured by certain AAA-rated asset-backed
securities (ABS) backed by recently originated consumer and business loans. The
TALF is intended to support the provision of credit to consumers and businesses
by enabling the issuance of ABS backed by private student loans, auto loans and
leases, consumer and corporate credit card receivables, certain loans guaranteed
by the Small Business Administration, and certain other assets. On July 23, 2020,
the Board adopted a revised term sheet for the TALF, reflecting a change to the
following term:
Eligible Borrowers. The term sheet was updated to provide that an eligible
borrower includes a business that maintains an account relationship with a TALF
Agent (rather than only with an FRBNY primary dealer).
Additional information about the TALF, and who is eligible to be a TALF
Agent, can be found on the Board’s public website at
https://www.federalreserve.gov/monetarypolicy/talf.htm.
Update. As of July 31, 2020:
The total outstanding amount of the FRBNY’s loans to the SPV
under the TALF was $1,619,452,027.5
The total outstanding amount of loans made by the SPV to eligible
borrowers was $1,619,452,027.
The total value of the collateral pledged to secure the FRBNY’s
5 Loans are extended to the SPV by the FRBNY on the loan closing date.
5
loans to the SPV was $11,622,743,903.6
The total value of the collateral pledged to secure the SPV’s loans to
eligible borrowers was $1,932,802,630.7
The total amount of interest, fees, and other revenue received by the
SPVwith respect to the TALF, reported on an accrualbasis, was
$1,705,913.
The total amount of interest, fees, and other revenue or items of
value received by the FRBNY, reported on an accrual basis, was
$56,756.
As described in the Board’s initial report to Congress regarding the
TALF, the TALF includes features that are intended to mitigate risk
to the Federal Reserve. TheBoard continues to expect that the
TALF will not result in losses to the FederalReserve.
Additional transaction-specific disclosures regarding the TALF may be
found in the attached spreadsheet (Spreadsheet B).8
F. Municipal Liquidity Facility
On April 8, 2020, the Board authorized the establishment of the MLF.
The MLF is intended to support lending to state, city, and county governments,
certain multistate entities, and other issuers of municipal securities. The FRBNY
operates the MLF. Additional information about the MLF can be found on the
Board’s public website at
https://www.federalreserve.gov/monetarypolicy/muni.htm.
Update. As of July 31, 2020:
The total outstanding amount of the FRBNY’s loans to the SPV was
6 Includes $10 billion equity investment from the Department of the Treasury.
7 Reflects the estimated market value of the collateral, based on information from third-party
vendors.
8 Transaction-specific disclosures regarding the TALF include the material investors identified
to the Board by TALF agents on or before the as-of date. This information may be updated in
future reports should the Board receive revised material investor information. The Board is
updating the transaction-specific disclosures contained in the July 9, 2020, periodic report
regarding the TALF. Specifically, the Board is providing updated information regarding the
identities of additional material investors, changes to the geographic information of certain
material investors, and a correction for the name of a material investor. An updated version of
the July 9, 2020, transaction-specific disclosures will be posted on the Board’s public website.
6
$1,200,000,000.9
The total outstanding amount of the notes held by the SPV was
$1,200,000,000.10
The total value of the collateral pledged to secure the FRBNY’s
loans to the SPV was $18,710,974,680.11
The total amount of interest, fees, and other revenue received by the
SPVwith respect to the MLF, reported on an accrual basis, was
$10,002,661.
The total amount of interest, fees, and other revenue or items of
value received by the FRBNY, reported on an accrual basis, was
$184,110.
As described in the Board’s initial report to Congress regarding the
MLF, the MLF includes features that are intended to mitigate risk to
the Federal Reserve. TheBoard continues to expect that the MLF
will not result in losses to the FederalReserve.
Additional transaction-specific disclosures regarding the MLF may be
found in the attached spreadsheet (Spreadsheet C).
G. Paycheck Protection Program Liquidity Facility
On April 8, 2020, the Board authorized each of the 12 Federal Reserve
Banks to establish and operate the PPPLF. The PPPLF offers a source of
liquidity to the financial institution lenders that lend to small businesses through
the Small Business Administration’s Paycheck Protection Program. Additional
information about the PPPLF can be found on the Board’s public website at
https://www.federalreserve.gov/monetarypolicy/ppplf.htm.
Update. As of July 31, 2020:
The total outstanding amount of all advances under the PPPLF was
$70,714,837,465.
The total value of the collateral pledged to secure outstanding
advances was $70,714,837,465.
9 Loans are extended to the SPV by the FRBNY on the basis of settled note purchase
transactions.
10 Only settled transactions are included in the total outstanding amount of the notes held by the
SPV.
11 Includes $17.5 billion equity investment from the Department of the Treasury and interest
earned thereon.
7
The amount of interest, fees, and other revenue or items of value
received under the facility, reported on an accrual basis, was
$50,073,328.
As described in the Board’s initial report to Congress regarding the
PPPLF, the PPPLF includes features that are intended to mitigate
risk to the Federal Reserve. The Board continues to expect that the
PPPLF will not result in losses to the Federal Reserve.
Additional transaction-specific disclosures regarding the PPPLF may be
found in the attached spreadsheet (Spreadsheet D).
H. Main Street Lending Program
The Board has established a Main Street Lending Program (MSLP) to
support lending to small and medium-sized businesses and nonprofit
organizations that were in sound financial condition before the onset of the
COVID-19 pandemic. The MSLP includes five facilities: the MSNLF, MSELF,
MSPLF, NONLF,and NOELF. The FRBB has established one SPVto manage
and operate all five facilities. This periodic update provides aggregate
information about the MSLP.12 Additional information about the MSLP can be
found on the Board’s public website at
https://www.federalreserve.gov/monetarypolicy/mainstreetlending.htm.
Update. As of July 31, 2020:
The total outstanding amount of the FRBB’s loans to the SPV under
the MSLP was $87,566,250.13
The total value of the collateral pledged to secure the FRBB’s loans
to the SPVwas $37,593,417,611.14
The total amount of interest, fees, and other revenue received by the
SPVwith respect to the MSLP, reportedon an accrualbasis, was
$4,933,712. This includes $4,862,002 received on commingled
12 This report does not contain aggregate or transaction-level information about the NONLF and
NOELF, which were not yet operational as of July 31, 2020.
13 Loans are extended to the SPV by the FRBB on the basis of settled transactions.
14 Includes the amortized cost of participations purchased under the MSNLF in the amount of
$17,123,750; the amortized cost of participations purchased under the MSELF in the amount of
$0; and the amortized cost of participations purchased under the MSPLF in the amount of
$70,442,500. Also includes equity investment from the Department of the Treasury and related
reinvestment earnings of $37,504,862,002; cash equivalents of $921,750; and interest and other
receivables of $67,609.
8
investments of the MSLP, such as the equity investment from the
Department of the Treasury, and amounts received of $9,577 under
the MSNLF, $0 under the MSELF, and $62,133 under the MSPLF
related to severable assets and accounts of the facilities.
The total amount of interest, fees, and other revenue or items of
value received by the FRBB, reported on an accrual basis, was
$2,075.
As described in the Board’s initial reports to Congress regarding the
MSNLF, MSELF, MSPLF, NONLF, and NOELF, the MSLP
includes features that are intended to mitigate risk to the Federal
Reserve. The Board continues to expect that the MSLP will not
result in losses to the Federal Reserve.
Additional transaction-specific disclosures regarding the MSLP may be
found in the attached spreadsheet (Spreadsheet E).
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