Financial crisis solutions in the commercial paper market: An analysis of the CPFF and the TLGP

Joshua Fairbanks, Mark Griffiths, Drew Winters

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

Purpose: The purpose of this paper is to examine programs designed to support the commercial paper market during the financial crisis. Design/methodology/approach: The paper analyzes the participants in the two programs to determine why domestic financial institutions chose one program over the other. Findings: Domestic financial institutions chose the Temporary Liquidity Guarantee Program over the Commercial Paper Funding Facility (CPFF) while foreign financial institutions chose the CPFF. Practical implications: The analysis is intended to support future policy debate on how to address a liquidity crisis in the money markets. Originality/value: The authors are the first paper to examine the participants in these two programs. The value is the policy implications of this study.

Original languageEnglish
Pages (from-to)294-310
Number of pages17
JournalManagerial Finance
Volume45
Issue number2
DOIs
StatePublished - Feb 11 2019

Keywords

  • Commercial Paper Funding Facility (CPFF)
  • Commercial paper
  • Financial crisis
  • Temporary Liquidity Guarantee Program (TLGP)

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