Weekly Update: Bank Term Funding Program
This week’s BTFP level is once again at a record ($162 billion) as banks arb the BTFP’s borrowing rate (4.85%) versus the Fed Funds rate (5.33%):
The Bank Term Funding Program (BTFP, bail out/QE) had approximately $161.5 billion in outstanding loans as of Wednesday this week, up from $147.2 billion a week ago. This represents another record level for this Fed bailout facility.
FEDERAL RESERVE statistical release: https://www.federalreserve.gov/releases/h41/current/