In this report, we provide our first in-depth assessment of financial-market and -regulatory provisions in the sweeping COVID bill unanimously approved by the Senate late last night. The House will take this up, but the procedure for doing so remains in flux due to progressive opposition that complicates the unanimous-consent process necessary for remote approval. The analysis here is preliminary as the bill was in flux up to late last night and drafting in several key sections reviewed yesterday was clearly incomplete. Almost $1 trillion of loans, guarantees, and warrants is, though, assured from the combination of Treasury and FRB facilities authorized in some cases for specific interests and in others for more general market, municipal, and small-business access. Terms and conditions apply based on which funding window is used and the type of borrowing. MMF support via Treasury is also expanded to support the Fed’s new liquidity facility (see Client Report COVID6).
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