A flurry of articles appear today on the Federal Reserve's new "Money Market Investor Funding Facility". These include: NY Times' "Fed Adds to Its Efforts to Aid Credit Markets", Bloomberg's "Fed to Provide Up to $540 Billion to Aid Money Funds", AP's "Fed announces new plan to help money market funds", and Bloomberg's "BlackRock, Amid Outflows, Backs Fed Money-Fund Plan". The Bloomberg article quotes BlackRock's Larry Fink, "The Fed action today is going to cause more stability. It will allow people like BlackRock and other money-market funds to start extending purchases of commercial paper. It gives flexibility." The article adds, "Money-market funds are the biggest buyers of the short-term debt. Commercial paper, which typically matures in 270 days or less, is used by companies to finance payroll, rent and other daily expenses."
