Federal Reserve Bank of New York hired Pacific Investment Management Co. to serve as asset manager for a Commercial Paper Funding Facility, and State Street Bank as custodian and administrator for the program.
The CPFF is being set up to ensure the smooth functioning of the U.S. commercial paper market during the economic upheaval related to the coronavirus pandemic, said a news release from the New York Fed.
Treasury Secretary Steven Mnuchin approved the Federal Reserve board's CPFF on March 17 to provide liquidity to the financial system, including short-term credit to businesses.
The Federal Reserve previously hired PIMCO and State Street as asset manager and custodian/administrator, respectively, when it opened a CPFF in October 2008 during the global financial crisis.
The facility will purchase commercial paper until March 17, 2021, unless extended by the Federal Reserve's board of governors.
Federal Reserve spokeswoman Betsy Bourassa could not be immediately reached for additional comment.
