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. Tax-Exempt Commercial Paper

    An unsecured short-term loan, usually issued to finance short-term ...
  6. Excess Spread

    Remaining net interest payments from the underlying assets of ...
Related Articles
  1. ETFs & Mutual Funds

    Asset-Backed Commercial Paper Carries High Risk

    Asset-backed commercial paper has characteristics that make it much more risky than traditional commercial paper.
  2. Managing Wealth

    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. Retirement

    Money Market Mayhem: The Reserve Fund Meltdown

    This event serves as a stark reminder to investors about understanding their portfolios.
  4. Personal Finance

    Understanding Mortgage-Backed Securities

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

    Money Market: Commercial Paper

    For many corporations, borrowing short-term money from banks is often a laborious and annoying task. The desire to avoid banks as much as possible has led to the widespread popularity of commercial ...
  6. Markets

    Bailout Acronyms 101

    The subprime meltdown gave rise to a mouthful of financial acronyms. Learn how to sort through this alphabet soup.
  7. Markets

    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 ...
  8. Financial Advisor

    Impact of SEC's New Money Market Fund Rules

    A look at how new rules introduced by the SEC will impact money market funds.
  9. ETFs & Mutual Funds

    Introduction To Money Market Mutual Funds

    Learn about the easiest way to benefit from money market securities.
  10. Investing

    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.
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. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  2. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  3. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  4. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  5. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
  6. Real Rate Of Return

    The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other ...
Trading Center