Market Support Programs

Outright Purchases of Commercial Paper (Japan)

Operational: January 22, 2009

Purpose

The measure had the “aim of ensuring stability in financial markets as well as facilitating corporate financing by conducting appropriate money market operations.”

Key Terms

  • Introduction Date
    December 19, 2008
  • Operational Date
    January 22, 2009
  • Termination Date
    December 31, 2009
  • Legal Authority
    Article 33, Bank of Japan Act 1997
  • Size of the Fund
    ¥3 trillion (~US$27 billion)
  • Amount Invested
    10 purchases of ¥300 billion each
  • Covered Maturities
    Residual maturity of up to 3- months; rating of a-1
  • Purchase Price
    Counterparty yield spread plus BOJ minimum spread
  • Usage
    ¥2.68 trillion; 0.0988 avg. yield spread

Key Design Decisions

Purpose of MLP1

Auction or Standing Facility1

Program Size1

Program Duration1

Eligible Institutions1

Interest Rate1

Eligible Collateral or Assets3

Participation Limit1

Key Program Documents

Key Program Documents

Key Program Documents

Key Program Documents

Key Program Documents

Key Program Documents

Key Program Documents

Taxonomy

Intervention Categories:

  • Market Support Programs

Countries and Regions:

  • Japan

Crises:

  • Global Financial Crisis