Is senior unsecured debt issued under the FDICs Temporary Liquidity Guarantee Program (TLGP) or the NCUAs Temporary Corporate Credit Union Liquidity Guarantee Program (TCCULGP) eligible to pledge for discount window or payment system risk collateral purposes?
Yes. Senior unsecured debt issued under the FDIC’s TLGP and the NCUA’s TCCULGP program may be pledged for discount window or payment system risk purposes. May a depository institution pledge asset-backed commercial paper? Federal Reserve Banks accept investment grade commercial paper. Asset-backed commercial paper is viewed as a particular type of commercial paper and thus is eligible for consideration. Reserve Bank discount window staff may request information on the structure and/or the quality of the underlying assets in order to assign appropriate collateral value. May a depository institution pledge sub-prime mortgages? The Federal Reserve Banks accept performing mortgages. This could include sub-prime mortgages. May a depository institution pledge a structured debt obligation containing sub-prime mortgages in the underlying collateral? Debt obligations containing subprime mortgages are acceptable as collateral if they meet Federal Reserve Bank acceptability requirements, includin
Related Questions
- Is senior unsecured debt issued under the FDICs Temporary Liquidity Guarantee Program (TLGP) or the NCUAs Temporary Corporate Credit Union Liquidity Guarantee Program (TCCULGP) eligible to pledge for discount window or payment system risk collateral purposes?
- Does the Temporary Liquidity Guarantee Program include new senior unsecured debt issued from an existing note program under a shelf registration that still has unused availability?
- Is senior unsecured debt issued under the FDICs Temporary Liquidity Guarantee Program (TLGP) eligible to pledge for discount window or payment system risk collateral purposes?
