Yale School of Management

Posts by Municipalities

Federal Reserve Lowers Pricing for Municipal Liquidity Facility

August 19, 2020
The Federal Reserve Board announced August 10 that it would revise pricing for the Municipal Liquidity Facility (MLF). Specifically, the updated term sheet includes a reduction in the interest rate on MLF loans of 50 basis points across all credit rating categories. The Fed also revised the relationship between interest rates for tax-exempt notes and for taxable notes. Continue reading “Federal Reserve Lowers Pricing for Municipal Liquidity Facility”

HEROES Act would provide $3 trillion in additional benefits but unlikely to progress

June 2, 2020
The $3 trillion Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act , which the House of Representatives passed on May 15, is the fourth and largest legislative rescue package proposed by the US Congress in response to the COVID-19 pandemic. It would help to mitigate the economic impact of continued shelter-in-place orders and soaring unemployment rates. Continue reading “HEROES Act would provide $3 trillion in additional benefits but unlikely to progress”

Federal Reserve Expands Eligibility for Municipal Liquidity Facility

May 4, 2020
On April 27, the Federal Reserve announced an expansion in scope and duration of the Municipal Liquidity Facility (MLF), a new facility established on April 9 to alleviate the funding needs of cities, counties, and states as municipalities fight the ongoing threat of COVID-19 across the United States and bond markets stall. Continue reading “Federal Reserve Expands Eligibility for Municipal Liquidity Facility”

Federal Reserve Announces $2.3 trillion Lending Package

April 10, 2020
The Federal Reserve announced on April 9 a series of programs totaling $2.3 trillion with significant equity participation from the Treasury, including unprecedented direct financing to businesses. The programs include new facilities and expansions of existing programs. By including both riskier securities and issuers, they signal the Fed's willingness to take risks it did not take during the Global Financial Crisis. Continue reading “Federal Reserve Announces $2.3 trillion Lending Package”

Federal Reserve Announces New Municipal Liquidity Facility

April 10, 2020
On April 9, the Federal Reserve announced the Municipal Liquidity Facility (MLF) as part of a new series of facilities providing up to $2.3 trillion in loans to support the economy. The facility aims to ease cash flow pressures on state and local governments as they adjust to a decline in municipal and state revenues and face greater than expected public health costs due to the  COVID-19 pandemic . Continue reading “Federal Reserve Announces New Municipal Liquidity Facility”