What Does Commercial
Paper Funding Program - CPFP Mean?
instituted in October of 2008 that created the Commercial Paper Funding
Facility (CPFF). The Commercial Paper Funding Program (CPFP) was
designed to increase the liquidity of the commercial paper market by
providing funding to issuers. The program specifically provided a backup
measure of liquidity for commercial paper issuers via a Special Purpose
explains Commercial Paper Funding Program - CPFP
SPVs were financed directly by the Federal Reserve Bank of New York
and were used to purchase three-month commercial paper, both secured and
unsecured. This financing was then to be secured by the assets placed
into the SPVs and also by the fees paid by issuers of unsecured paper.
The Treasury department felt that the program was required in order to
prevent further substantial disruption of the financial markets.