"Characteristics of Participants in the Commercial Paper Funding Facility" at 2023 IGBR Conference
7This is the April 21, 2023, conference presentation of "Characteristics of Participants in the Commercial Paper Funding Facility" at the Institute for Global Business Research conference in New Orleans by Dr. Linus Wilson.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1911454
"Characteristics of Participants in the Commercial Paper Funding Facility
43 Pages Posted: 17 Aug 2011 Last revised: 3 Nov 2022
Linus Wilson
University of Louisiana at Lafayette - College of Business Administration
Yan Wendy Wu
Wilfrid Laurier University
Date Written: November 2, 2022
Abstract
The Commercial Paper Funding Facility (CPFF) bought commercial paper from highly rated issuers of U.S. dollar commercial paper during the financial crisis of 2008 to 2009. This is the only study to analyze the accounting characteristics of both financial and non-financial firms selected for this Federal Reserve program. In logistic regressions, CPFF participants and non-participants differed little solvency or liquidity ratios. Thus, there is little evidence of adverse selection into this program. Nevertheless, CPFF participants were significantly more likely to come from the financial sector, to pose greater systemic risks, and be based in North America.
Keywords: ABCP, Asset Backed Commercial Paper, bailout, banks, Capital Purchase Program (CPP), commercial paper, Commercial Paper Funding Facility (CPFF), emergency lending, Federal Reserve, multinational firms, section 13(3), Troubled Asset Relief Program (TARP), U.S. Treasury, unsecured commercial paper
JEL Classification: G01, G18, G2, G28
Suggested Citation:
Wilson, Linus and Wu, Yan Wendy, Characteristics of Participants in the Commercial Paper Funding Facility (November 2, 2022). Available at SSRN: https://ssrn.com/abstract=1911454 or http://dx.doi.org/10.2139/ssrn.1911454
"
See all of Dr. Linus Wilson's research at www.financeprofessor.org or www.linuswilson.com