: New Fed bank facility could see up to $2 trillion of usage, JPMorgan analysts say

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The Federal Reserve’s new facility set up after the collapse of two U.S. banks last week could see up to $2 trillion of use, according to a new analysis.

The Fed last weekend set up a lending program called the Bank Term Funding Program. What’s unique about it is that banks are allowed to pledge collateral at par, at a time when those securities are trading at a loss due to the surge in interest rates over the last year.

The downturn in bond prices was among the factors that led to the collapse of SVB Financial SIVB, -60.41%.

Analysts at JPMorgan led by Nikolaos Panigirtzoglou point out that six regional banks o...

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