During the fall of 2008, circumstances surrounding the collapse of significant financial institutions and headline events such as the Reserve Fund's "breaking the buck" prompted governments around the world to take action and ushered in the current theme of proactive sovereign intervention. As part of this initiative, various government-sponsored programs were introduced, including U.S. CP-related initiatives such as the ABCP Money Market Mutual Fund Liquidity Facility (AMLF), the Commercial Paper Funding Facility (CPFF), the Money Market Investor Funding Facility (MMIFF), and the Straight-A Funding, LLC (Straight-A) programs.
Though structurally different, the intention of the AMLF and the MMIFF is to backstop the purchase of certain short-term debt instruments, including CP, CDs and bank notes, thereby creating additional liquidity in the capital markets for them. The CPFF provides for the issuance of qualified CP to the Federal Reserve Bank of New York (FRBNY) through its primary dealers. Straight-A is a recently launched government-backed ABCP conduit established with the intention of fostering Family Federal Education Loan Program (FFELP) lending by purchasing notes backed by FFELP student loans and funding the purchase via the issuance of ABCP.