The Fed Backstops $451 Million of NY MTA Notes Despite Efficient Market Conditions
Yesterday, the U.S. Federal Reserve’s Municipal Liquidity Facility (MLF) served as a backstop to the New York Metropolitan Transportation Authority (MTA). MTA solicited bids from Wall Street firms but ultimately rejected them in favor of the Fed’s MLF. The Fed lowered pricing on the MLF by 50 basis points last week. The New York MTA loan eventually amounted to, "a true interest cost of 1.92%, ‘resulting in savings of over 85 basis points compared to the public market levels,’ according to an emailed statement from MTA spokesperson Tim Minton."