AFSA Supports Fed Steps to Keep Credit Flowing April 01, 2020 The American Financial Services Association (AFSA) yesterday (March 31) sent a letter of support to the Federal Reserve Bank of New York on its Commercial Paper Funding Facility (CPFF). The CPFF will provide a liquidity backstop to U.S. issuers of commercial paper through a special purpose vehicle that will purchase unsecured and asset-backed commercial paper rated A1/P1 directly from eligible companies. The letter asks that the CPFF be expanded so that more companies, ones that are not rated A1/P1, can take advantage of it. “…some of AFSA’s members have entered into contracts with the U.S. Government that would assist the Federal Emergency Management Agency (FEMA) and others to deliver aid for the COVID-19 relief efforts,” AFSA President & CEO Bill Himpler wrote in the letter. “To do so, these businesses have been deemed “critical.” They need short-term commercial paper financing for their current assets.” AFSA also signed on to a joint trade letter advocating for this expansion to the Department of the Treasury. Expanding this form of credit will help lenders to continue to offer critical credit to consumers nationwide.