Steven Kelly on the Silicon Valley Bank Collapse and Its Implications for Financial Policy
Macro Musings with David Beckworth
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What's New in the Bank Term Funding Program?
The collateral is the open market operation. So typically, I mean, effectively, this is agency MBS and treasuries. Technically, there's agency debt, FHLB collateral is in there. Munis up to six months are technically allowed. But for all intents and purposes, we're talking about treasuries and MBS here. That's the eligible collateral. It's all bank counterparties. The biggest most notable thing that's provoked a lot of discussion is that the Fed is taking, we valued at par. And the other piece of this is that they got $25 billion of credit protection of equity, like first loss layer from the treasuries ESF
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