Results tagged “creditmarket”

After global stock markets fell--and the U.S.'s Dow Jones Industrial Average fell below 10,000 points for the first time since 2004-- the Federal Reserve announced it would create a new facility to buy the short-term debt (aka commercial paper) various companies hold. The "Commercial Paper Funding Facility" will "purchase three-month unsecured and asset-backed commercial paper" and "this facility should encourage investors to once again engage in term lending in the commercial paper market"--which is worth $1.6 trillion. Of course, it's unclear how much the Fed will ultimately buy.