The Federal Reserve Bank of New York said late Wednesday that it is in discussions with PIMCO regarding management of its new program to support the commercial paper market.
In a statement on its website, the New York Fed said the talks involved asset management services in support of the Commercial Paper Funding Facility to help provide liquidity to term-funding markets.
The Fed on Tuesday said it was creating the CPFF to purchase commercial paper to prevent substantial disruptions to the financial markets and the economy, with funding from the Treasury.
PIMCO CIO William H. Gross recently recommended that the government buy commercial paper.
PIMCO is honored to be considered for asset management services for the Commercial Paper Funding Facility, said PIMCO spokesman Mark Porterfield.
PIMCO had $830 billion in assets under management as of June 30.