Asset-Backed Commercial Paper Money Market Fund Liquidity Facility - AMLF

DEFINITION of 'Asset-Backed Commercial Paper Money Market Fund Liquidity Facility - AMLF'

A lending program created by the Federal Reserve Board on September 19, 2008, that will provide new funding to U.S. financial institutions until October 30, 2009. The Asset-Backed Commercial Paper Money Market Fund Liquidity Facility (AMLF) provides funding that allows financial institutions to purchase asset-backed commercial paper (ABCP) from money market mutual funds (MMMF) to prevent default on investors' redemptions.

BREAKING DOWN 'Asset-Backed Commercial Paper Money Market Fund Liquidity Facility - AMLF'

The acronym AMLF is generated by taking the first letters from the first two acronyms ABCP (asset-backed commercial paper) and MMMF (money market mutual fund). The letters "AM" are then combined with the acronym for liquidity facility, "LF".

RELATED TERMS
  1. Asset-Backed Commercial Paper - ...

    A short-term investment vehicle with a maturity that is typically ...
  2. Commercial Paper Funding Program ...

    A program instituted in October of 2008 that created the Commercial ...
  3. Commercial Paper Funding Facility ...

    An institution created by the Federal Reserve Bank of New York ...
  4. Paper Dealer

    A market maker that buys and sells extremely short-term corporate ...
  5. Excess Spread

    Remaining net interest payments from the underlying assets of ...
  6. SEC Form 10-D

    A filing with the Securities and Exchange Commission (SEC), also ...
Related Articles
  1. Mutual Funds & ETFs

    Asset-Backed Commercial Paper Carries High Risk

    Asset-backed commercial paper has characteristics that make it much more risky than traditional commercial paper.
  2. Bonds & Fixed Income

    Introduction To Commercial Paper

    Commercial paper is a short-term instrument that can be a viable alternative for retail fixed-income investors looking for a better rate of return on their money.
  3. Home & Auto

    Understanding Mortgage-Backed Securities

    Find out the meaning of this popular asset-backed security and its benefits for banks and investors.
  4. Investing

    Commercial Paper

    Commercial paper is a short-term debt security issued by financial companies and large corporations. The corporation promises the buyer a return, or profit, for making the loan. The return is ...
  5. Mutual Funds & ETFs

    Introduction To Money Market Mutual Funds

    Learn about the easiest way to benefit from money market securities.
  6. Financial Advisors

    Impact of SEC's New Money Market Fund Rules

    A look at how new rules introduced by the SEC will impact money market funds.
  7. Investing News

    4 Factors to Know About Money Market Reform in 2016 (FII, BAC)

    Learn more about the impending implementation of the money market fund reform, including how it impacts individual and institutional investors.
  8. Investing

    Advising FAs: Explaining Mutual Funds to a Client

    More than 80 million people, or half of the households in America, invest in mutual funds. No matter what type of investor you are, there is bound to be a mutual fund that fits your style.
  9. Products and Investments

    Money Fund Alternatives for 401(k) Plan Clients

    Upcoming changes to money market fund rules may trigger changes in options offered by many 401(k) plans. Here are some alternatives to consider.
  10. Mutual Funds & ETFs

    2016's Most Promising Money Market Funds

    Learn information on some of the most promising money market mutual funds for investors to consider adding to their portfolio in 2016.
RELATED FAQS
  1. How can retail investors invest in commercial paper?

    Find out how individual retail investors can purchase short-term commercial paper, but why it rarely makes good investment ... Read Answer >>
  2. Can retail investors buy commercial paper?

    Find out whether retail investors buy commercial paper, and learn about the restrictions that often prevent individual investors ... Read Answer >>
  3. Can a business ever be too small to issue commercial paper?

    See why market forces regulate the size of companies that issue commercial paper, even though there are no official regulations ... Read Answer >>
  4. What are some examples of securities that can be found in a money market fund?

    Learn about examples of securities found in money market accounts. These securities need to be safe, liquid and of short-term ... Read Answer >>
  5. What happens when a company defaults on its commercial paper obligations?

    Read about the possible consequences of a large corporation defaulting on its commercial paper obligations even though the ... Read Answer >>
  6. What are some examples of money market funds?

    Learn more about different types of money market mutual funds, including those that invest in government paper versus commercial ... Read Answer >>
Hot Definitions
  1. Physical Capital

    Physical capital is one of the three main factors of production in economic theory. It consists of manmade goods that assist ...
  2. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  3. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  4. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  5. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  6. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
Trading Center