Today, March 23, 2020, following submission of a letter in which the BDA urged the fed to take action to support the municipal market, and ongoing calls from a broad range of market participants, the Federal Reserve announced extensive, new measures that will:
- Facilitate the flow of credit to municipalities by expanding the Money Market Mutual Fund Liquidity Facility (MMLF) to include a wider range of securities, including municipal variable rate demand notes (VRDNs) and bank certificates of deposit; and
- Facilitating the flow of credit to municipalities by expanding the Commercial Paper Funding Facility (CPFF) to include high-quality, tax-exempt commercial paper as eligible securities. In addition, the pricing of the facility has been reduced.
The BDA will continue to provide updates as they become available.