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. |
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Investopedia explains '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". |
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