How will the MMIFF work?
A major financial institution will form five private-sector special-purpose vehicles (PSPVs) to purchase eligible money market securities from eligible money market investors. The PSPVs will buy the securities at amortized cost. The Federal Reserve Bank of New York will lend these PSPVs up to $540 billion to support $600 billion in purchases. An investor who sells securities to a PSPV will receive 90 percent of the purchase price in cash and 10 percent in the form of asset-backed commercial paper (ABCP) issued by the PSPV.
