Monthly Report on Credit and Liquidity Programs
and the Balance Sheet
|Abbreviations||Overview||System Open Market Account|
The Overview section of this report highlights developments in the operations of the Federal Reserve’s credit and liquidity programs and facilities since last month’s report, and presents data describing changes in the assets, liabilities, and total capital of the Federal Reserve System as of April 25, 2012.
FRBNY Sells $9.9 Billion in Face Value of Maiden Lane III LLC Assets
- On April 26, 2012, the Federal Reserve Bank of New York (FRBNY) announced that it had sold $7.5 billion in face value of assets from the Maiden Lane III LLC portfolio to a consortium consisting of Barclays Capital Inc. and Deutsche Bank Securities Inc., following a competitive bid process that was announced by the FRBNY on April 18, 2012. This transaction resulted in a substantial reduction of the Maiden Lane III LLC portfolio and a corresponding paydown on the senior loan to Maiden Lane III LLC extended by the FRBNY. Additional information about the sale is available at www.newyorkfed.org/newsevents/news/markets/2012/an120426.html and www.newyorkfed.org/markets/ml3_sec_offerings.html.
- On May 10, 2012, the FRBNY announced that it had sold $2.4 billion in face value of assets from the Maiden Lane III LLC portfolio to Merrill Lynch, Pierce, Fenner & Smith Inc. following a competitive bid process that was announced on May 4, 2012. This transaction resulted in further reductions of the Maiden Lane III LLC portfolio and the senior loan extended to Maiden Lane III LLC by the FRBNY. Additional information about the sale is available at www.newyorkfed.org/newsevents/news/markets/2012/an120510.html and www.newyorkfed.org/markets/ml3_sec_offerings.html.
- Information regarding subsequent security offerings and sales from the Maiden Lane III LLC portfolio is available at www.newyorkfed.org/markets/ml3_sec_offerings.html ; this information is updated as offerings and sales occur. The current fair value of the portfolio and outstanding balance on the loan from the FRBNY is available at www.newyorkfed.org/markets/maidenlane.html.
FRBNY Adds Eight Banks to List of Counterparties for Reverse Repo Transactions
- On April 30, 2012, the FRBNY announced that it had accepted eight more banks as reverse repurchase agreement (reverse repo) counterparties. Each of these banks applied to be an eligible reverse repo counterparty under criteria released by the FRBNY on December 2, 2011. Further information on reverse repo counterparties is available at www.newyorkfed.org/markets/rrp_counterparties.html. The expanded counterparties list is available at www.newyorkfed.org/markets/expanded_counterparties.html.
Federal Reserve Conducts Small-Value TDF Auction
- On May 14, 2012, the Federal Reserve conducted an auction of $3 billion of 28-day term deposits through the Term Deposit Facility (TDF). The ongoing small-value TDF offerings are a matter of prudent planning and have no implications for the near-term conduct of monetary policy. Additional information about term deposits, auction results, and future small-value offerings is available through the TDF Resource Center at www.frbservices.org/centralbank/term_deposit_facility.html.
Federal Reserve System Selected Assets, Liabilities, and Total Capital
Table 1 reports selected assets and liabilities and total capital of the Federal Reserve System and presents the change in these components over the past month and since this time last year.
Figure 1 displays the levels of selected Federal Reserve assets and liabilities, securities holdings, and credit extended through liquidity facilities since 2007.
Table 1. Assets, liabilities, and capital of the Federal Reserve System
Billions of dollars
April 25, 2012
March 28, 2012
April 27, 2011
|Securities held outright||2,610||+12||+143|
|U.S. Treasury securities1||1,668||+3||+255|
|Federal agency debt securities1||95||-1||-31|
|Memo: Overnight securities lending3||14||-7||-1|
|Memo: Net commitments to purchase mortgage-backed securities4||32||-12||+32|
|Lending to depository institutions5||*||
|Central bank liquidity swaps6||32||-33||+32|
|Lending through the Term Asset-Backed Securities Loan Facility7||7||-*||-10|
|Net portfolio holdings of TALF LLC8||1||+*||+*|
|Support for specific institutions||24||+1||-42|
|Net portfolio holdings of Maiden Lane LLC9||4||-1||-21|
|Net portfolio holdings of Maiden Lane II LLC9||*||-*||-17|
|Net portfolio holdings of Maiden Lane III LLC9||20||+3||-5|
|Federal Reserve notes in circulation||1058||+2||+86|
|Term deposits of depository institutions||0||-3||-5|
|Other deposits of depository institutions||1,526||-39||+74|
|U.S. Treasury, general account||103||+35||-23|
|U.S. Treasury, supplementary financing account||0||0||-5|
* Less than $500 million. Return to table
1. Face value. Return to table
2. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Current face value, which is the remaining principal balance of the underlying mortgages. Does not include unsettled transactions. Return to table
3. Securities loans under the overnight facility are off-balance-sheet transactions. These loans are shown here as a memo item to indicate the portion of securities held outright that have been lent through this program. Return to table
4. Current face value. Includes commitments associated with outright purchases, dollar rolls, and coupon swaps. Return to table
5. Total of primary, seasonal, and secondary credit. Return to table
6. Dollar value of the foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. Return to table
7. Book value. Return to table
8. As of April 25, 2012, TALF LLC had purchased no assets from the FRBNY. Return to table
9. Fair value, reflecting values as of March 31, 2012. Fair value reflects an estimate of the price that would be received upon selling an asset if the transaction were to be conducted in an orderly market on the measurement date. Fair values are updated quarterly. Return to table
Figure 1. Credit and liquidity programs and the Federal Reserves balance sheet.