Cash for Bond Lending

What Does Cash for Bond Lending Mean?
A lending structure used in the Federal Reserve's Term Auction Facility (TAF), whereby borrowers receive a cash loan, by using all or a portion of their own portfolio of bonds as collateral.

Investopedia explains Cash for Bond Lending
The cash for bond lending structure is not to be confused with the bond for bond lending structure, in which the borrower takes bonds instead of cash.

Related Terms

Bond
Facility
Federal Reserve Bank
M2
Monetary Policy
Money Supply
Primary Dealer
Term Auction Facility (TAF)
Term Securities Lending Facility (TSLF)
More Related Terms

Related Links

The Federal Reserve - Few organizations can move the market like the Federal Reserve. As an investor, it's important to understand exactly what the Fed does and how it influences the economy.
Formulating Monetary Policy - Learn about the tools the Fed uses to influence interest rates and general economic conditions.
Compare Local Interest Rates - Search and compare the best checking and savings rates nationwide from Bankrate.com. Click Here!
How do open market operations affect the U.S. money supply?
What Is the Quantity Theory of Money? - Take a look at the tenets, assumptions and challenges of monetarism's principle theory.
How do central banks acquire currency reserves and how much are they required to hold?
How do central banks inject money into the economy?

Rate this Term: Your Rating: Overall Rating: Vote Now!