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Financial crisis solutions in the commercial paper market: An analysis of the CPFF and the TLGP

Joshua Fairbanks (Department of Finance, Texas Tech University, Lubbock, Texas, USA)
Mark Griffiths (Department of Finance, University of Southern California, Los Angeles, California, USA)
Drew Winters (Rawls College of Business, Texas Tech University, Lubbock, Texas, USA)

Managerial Finance

ISSN: 0307-4358

Article publication date: 31 December 2018

Issue publication date: 18 February 2019

407

Abstract

Purpose

The purpose of this paper is to examine programs designed to support the commercial paper market during the financial crisis.

Design/methodology/approach

The paper analyzes the participants in the two programs to determine why domestic financial institutions chose one program over the other.

Findings

Domestic financial institutions chose the Temporary Liquidity Guarantee Program over the Commercial Paper Funding Facility (CPFF) while foreign financial institutions chose the CPFF.

Practical implications

The analysis is intended to support future policy debate on how to address a liquidity crisis in the money markets.

Originality/value

The authors are the first paper to examine the participants in these two programs. The value is the policy implications of this study.

Keywords

Citation

Fairbanks, J., Griffiths, M. and Winters, D. (2019), "Financial crisis solutions in the commercial paper market: An analysis of the CPFF and the TLGP", Managerial Finance, Vol. 45 No. 2, pp. 294-310. https://doi.org/10.1108/MF-10-2017-0388

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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