What is the relationship between the AMLF and the MMIFF?
The AMLF finances the purchases of ABCP by banking organizations with loans from the Federal Reserve Bank of Boston at the primary credit rate. The loans are collateralized by the ABCP but are without recourse to the borrowing banking organization. Under the MMIFF, the New York Fed’s loans are collateralized by a different set of money market instruments and are with recourse to the borrowing PSPV. Both the AMLF and the MMIFF are intended to facilitate the sale of assets by money market mutual funds in the secondary market to increase their liquidity and encourage them to lend at longer maturities, but the MMIFF facilitates the sale of a different set of assets than the AMLF.
