The Federal Reserve has expanded the scope and duration of its Municipal Liquidity Facility
- duration of eligible securities to 3 years up from 24 months previously
- to consider expanding facility to include limited number of government entities that issue revenue bonds
- to lend up to $500 bn under MLF on $35 bn of Treasury equity
- expands scope of municipal liquidity facility to cover counties with populations of at least 500,000, down from 2 mn, and cities of 250,000 residents, down from 1 mn
- says changes to municipal liquidity facility will allow 'substantially more' entities to borrow
- says borrowers under municipal liquidity facility must have had investment grade rating from 2 rating organizations as of April 8
Headlines via Reuters - bolding is mine, this is extra liquidity added by the Fed. That is, further monetary support.
