The Federal Reserve Board ("FRB") revised its Municipal Liquidity Facility ("MLF") term sheet to include a pricing methodology.

As previously covered, the MLF will purchase up to $500 billion in short-term notes issued by U.S. states, cities and counties that meet certain population thresholds. In the updated MLF term sheet, the FRB added a pricing appendix to provide further information on taxable and tax-exempt eligible notes.

Primary Sources

  1. FRB Press Release: Federal Reserve publishes updates to the term sheet for the Municipal Liquidity Facility
  2. FRB Term Sheet: Municipal Liquidity Facility
  3. FRB Appendix: Appendix B, Municipal Liquidity Facility - Pricing Appendix

Originally published 11 May 2020

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