Fed acts as middleman II

This morning the Fed released the following statement:

The Federal Reserve Board on Tuesday announced the creation of the Commercial Paper Funding Facility (CPFF).
(…)
The CPFF will provide a liquidity backstop to U.S. issuers of
commercial paper through a special purpose vehicle (SPV) that will
purchase three-month unsecured and asset-backed commercial paper
directly from eligible issuers.
(…)
The commercial paper market has been under considerable strain in
recent weeks as money market mutual funds and other investors,
themselves often facing liquidity pressures, have become increasingly
reluctant to purchase commercial paper, especially at longer-dated
maturities. As a result, the volume of outstanding commercial paper has
shrunk, interest rates on longer-term commercial paper have increased
significantly, and an increasingly high percentage of outstanding paper
must now be refinanced each day. A large share of outstanding
commercial paper is issued or sponsored by financial intermediaries,
and their difficulties placing commercial paper have made it more
difficult for those intermediaries to play their vital role in meeting
the credit needs of businesses and households.

By eliminating much of the risk that eligible issuers will not be
able to repay investors by rolling over their maturing commercial paper
obligations, this facility should encourage investors to once again
engage in term lending in the commercial paper market. Added investor
demand should lower commercial paper rates from their current elevated
levels and foster issuance of longer-term commercial paper. An improved
commercial paper market will enhance the ability of financial
intermediaries to accommodate the credit needs of businesses and
households.

Sounds good to me.