The Federal Reserve Board has created the Commercial Paper Funding Facility (CPFF), which is a facility that will complement the Fed's existing credit facilities to help provide liquidity to term funding markets.

According to a release from the Fed, the SPV will purchase directly from eligible issuers three-month U.S. dollar-denominated CP at a spread over the three-month overnight index swap (OIS) rate. It will also consult with market players about appropriate spreads that are consistent with the facility serving as a funding backstop under more normal market conditions (for instance, 100 basis points).

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