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