Federal Reserve Section 13(3) Periodic Report — July 9, 2020

Record facts

Full text

1 
Periodic Report: Update on Outstanding Lending Facilities  
Authorized by the Board under Section 13(3) of the Federal Reserve Act 
July 9, 2020 
Overview 
The Board of Governors of the Federal Reserve 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 third periodic update on the Municipal Liquidity Facility (MLF) and 
the Paycheck Protection Program Liquidity Facility (PPPLF).  In addition, this 
report provides the fourth periodic update on the Primary Dealer Credit Facility 
(PDCF), the Money Market Mutual Fund Liquidity Facility (MMLF), the 
Commercial Paper Funding Facility (CPFF), the Primary Market Corporate Credit 
Facility (PMCCF), the Secondary Market Corporate Credit Facility (SMCCF), and 
the Term Asset-Backed Securities Loan Facility (TALF).1 
In addition to these eight facilities, the Board also has authorized the 
establishment of the following credit facilities under section 13(3) of the Federal 
Reserve Act:  the Main Street New Loan Facility, the Main Street Expanded 
Loan Facility, and the Main Street Priority Loan Facility.  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 Dealer Credit Facility
On March 17, 2020, the Board authorized the Federal Reserve Bank of 
1  The Board provided its second periodic update for the MLF on June 14, 2020, and its third 
periodic update for the PMCCF, SMCCF, and TALF on June 27, 2020.  Although 30 days 
have not passed since those reports, providing an update on the PMCCF, SMCCF, TALF, and 
MLF to Congress on July 9, 2020, as of June 30, 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, 
and PPPLF with the end of the month with its June 9, 2020, update.  The Board will provide 
reports about all eight facilities to the Committees at least every 30 days. 

2 
 
 
New York (FRBNY) to establish and operate the PDCF.  The PDCF is a term 
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 June 30, 2020: 
 The total outstanding amount of the FRBNY’s loans under the 
PDCF was $2,489,100,000. 
 The total value of the collateral pledged to the FRBNY was 
$2,827,083,827. 
 The amount of interest, fees, and other revenue or items of value 
received by the FRBNY, reported on an accrual basis, was 
$11,824,383. 
 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.  The Board continues to expect that the 
PDCF will not result in losses to the Federal Reserve. 
 
B. Commercial Paper Funding 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 commercial paper directly from eligible issuers.  Additional 
information concerning the CPFF can be found on the Board’s public website at 
https://www.federalreserve.gov/monetarypolicy/cpff.htm.  
 
Update.  As of June 30, 2020:   
 The outstanding amount of the FRBNY’s loans to the special purpose 
vehicle (SPV) was $4,242,570,889.  
 The total outstanding amount of the commercial paper held by the 
SPV was $4,252,354,764.   
 The total value of the collateral pledged to secure the FRBNY’s loan 

3 
 
 
to the SPV was $14,299,243,516.2  
 The amount of interest, fees, and other revenue or items of value 
received by the FRBNY, reported on an accrual basis, was $808,687.  
 The amount of interest, fees, and other revenue or items of value 
received by the SPV, reported on an accrual basis, was $20,616,578.  
 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.  The Board continues to expect that the CPFF 
will not result in losses to the Federal Reserve.   
 
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.  The MMLF 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 mutual funds, 
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 June 30, 2020: 
 The total outstanding amount of the FRBB’s loans under the MMLF 
was $21,442,189,003.   
 The total value of the collateral pledged to secure the FRBB’s loans 
was $21,451,019,503.  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 
received by the FRBB, reported on an accrual basis, was 
$126,907,551.   
 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.  
 
                                              
2  Includes $10 billion equity investment from the Department of the Treasury. 

4 
 
 
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 FRBNY has established one SPV to manage and 
operate the CCFs.  This section provides aggregate information about the CCFs, 
while Section E provides information about recent updates to the terms of the 
PMCCF.  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 June 30, 2020: 
 The total outstanding amount of the FRBNY’s loans under the CCFs 
was $9,444,965,504.3  All loans were extended under the SMCCF. 
 The total value of the collateral pledged to secure the FRBNY’s 
loans to the SPV was $47,085,326,366.4 
 The total amount of interest, fees, and other revenue received by the 
SPV with respect to the CCFs, reported on an accrual basis, was 
$13,698,621.   
 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 $590,500.   
 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.  The Board continues to expect that the CCFs 
will not result in losses to the Federal Reserve. 
 
Additional transaction-specific disclosures regarding the SMCCF may be 
                                              
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 $7,973,551,046 and the amortized cost of corporate bonds purchased under the SMCCF in the 
amount of $1,586,130,865, each of which is the recorded value of transactions that have reached 
their contractual settlement date as of June 30, 2020.  As of June 30, 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 
($228,101,243); see also supra, n.1.  Also includes equity investment from the Department of the 
Treasury and related reinvestment earnings of $37,503,674,979; cash equivalents of $9,832,409; 
and interest and other miscellaneous receivables of $12,137,067. 

5 
 
 
found in the attached spreadsheet (Spreadsheet A).  As of June 30, 2020, the 
PMCCF was operational but had not yet closed any transactions.  Accordingly, 
there are no transaction-specific disclosures for the PMCCF. 
 
E. Primary Market Corporate Credit Facility 
 
On June 15, 2020, the Board adopted a revised term sheet for the PMCCF, 
reflecting changes to the following terms: 
 
Eligible Issuers.  The updated term sheet clarifies that an issuer cannot be a 
subsidiary of a depository institution holding company. 
 
Pricing.  The updated term sheet revised the pricing criteria for the purchase of 
eligible corporate bonds as sole investor.  For these bonds, pricing will be issuer-
specific, informed by market conditions, plus a 100 bps facility fee.  Pricing also 
will be subject to minimum and maximum spreads over yields on comparable 
maturity U.S. Treasury securities, where such spread caps and floors will vary 
based on an eligible issuer’s credit rating as of the date on which the PMCCF 
makes a purchase. 
 
F. 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.  Additional 
information about the TALF can be found on the Board’s public website at 
https://www.federalreserve.gov/monetarypolicy/talf.htm. 
 
Update.  As of June 30, 2020: 
 The total outstanding amount of the FRBNY’s loans to the SPV 
under the TALF was $252,155,890.5 
 The total outstanding amount of loans made by the SPV to eligible 
borrowers was $252,155,890. 
                                              
5  Loans are extended to the SPV by the FRBNY on the loan closing date. 

6 
 
 
 The total value of the collateral pledged to secure the FRBNY’s 
loans to the SPV was $10,252,748,670.6 
 The total value of the collateral pledged to secure the SPV’s loans to 
eligible borrowers was $304,988,644.7 
 The total amount of interest, fees, and other revenue received by the 
SPV with respect to the TALF, reported on an accrual basis, was 
$342,005. 
 The total amount of interest, fees, and other revenue or items of 
value received by the FRBNY, reported on an accrual basis, was 
$3,454. 
 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.  The Board continues to expect that the 
TALF will not result in losses to the Federal Reserve. 
 
Additional transaction-specific disclosures regarding the TALF may be 
found in the attached spreadsheet (Spreadsheet B). 
 
G. 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 June 30, 2020: 
 The total outstanding amount of the FRBNY’s loans to the SPV was 
$1,200,000,000.8 
 The total outstanding amount of the notes held by the SPV was 
$1,200,000,000.9 
                                              
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  Loans are extended to the SPV by the FRBNY on the basis of settled note purchase 
transactions. 
9  Only settled transactions are included in the total outstanding amount of the notes held by the 
SPV. 

7 
 
 
 The total value of the collateral pledged to secure the FRBNY’s 
loans to the SPV was $18,705,928,425.10 
 The total amount of interest, fees, and other revenue received by the 
SPV with respect to the MLF, reported on an accrual basis, was       
$4,854,488. 
 The total amount of interest, fees, and other revenue or items of 
value received by the FRBNY, reported on an accrual basis, was 
$82,192. 
 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.  The Board continues to expect that the MLF 
will not result in losses to the Federal Reserve. 
 
Additional transaction-specific disclosures regarding the MLF may be 
found in the attached spreadsheet (Spreadsheet C). 
 
H. 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 June 30, 2020: 
 The total outstanding amount of all advances under the PPPLF was 
$68,214,997,827. 
 The total value of the collateral pledged to secure outstanding 
advances was $68,214,997,827.  
 The amount of interest, fees, and other revenue or items of value 
received under the facility, reported on an accrual basis, was            
$29,662,327.  
 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 
                                              
10  Includes $17.5 billion equity investment from the Department of the Treasury and interest 
earned thereon. 

8 
 
 
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).

File and source

File

mlf-ppplf-pdcf-mmlf-cpff-pmccf-smccf-talf-7-10-20.pdf

Size

168,971 bytes

SHA-256

6d0c1755e5b639d6b5c6660ae1bb09c0455938b5e4c35d419310d3cb389b7f4b

Our copy

mlf-ppplf-pdcf-mmlf-cpff-pmccf-smccf-talf-7-10-20.pdf

Original

www.federalreserve.gov