NY Fed selects additional counterparties for commercial paper and corporate credit facilities

BY Reuters | ECONOMIC | 10/23/20 10:21 AM EDT

Oct 23 (Reuters) - The Federal Reserve Bank of New York announced on Friday that it selected additional counterparties to support the commercial paper funding facility and the secondary market corporate credit facility as needed.

Read more on the New York Fed's website https://www.newyorkfed.org/newsevents/news/markets/2020/20201023. (Reporting by Jonnelle Marte)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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