The details of the 15 October auction announced as part of the 3 October schedule are as follows:
|Amount||Auction Date||Settlement Date||Maturity Date|
|$10 billion||15 October 2008||17 October 2008||13 November 2008|
The list of eligible securities for these transactions, and associated margins and concentration ratios will be the same as announced on 6 October for the 91 Day Term PRA transaction.
These term PRAs will be transacted with Primary Dealers (PDs). Each PD will have a bidding limit of 25 per cent of the auctioned amount and will be subject to a maximum aggregate of all outstanding Term PRAs. For PDs rated A or higher, the maximum aggregate limit will be 25 per cent of the total outstanding; for PDs rated either BBB or lower or those without a rating, the limit will be 12.5 per cent. No substitution of collateral will be permitted in this transaction.
The auction will be held on 15 October at 9:00 (ET), and the results of these operations will be announced on the Bank's website at 10:00 (ET). The total amount of assets acquired through these term PRA operations will be announced on the Bank's website on the settlement day by 16:45 (ET).
Term PRA Facility for Private Sector Money Market Instruments
- Direct: Primary Dealers;
- Indirect: Other money market participants.
- Bankers' acceptances and promissory notes, including those of foreign issuers, (maximum term, 364 days) with a minimum issuer credit rating of R1 (low) by the Dominion Bond Rating Service (DBRS), or A-1 (mid) by Standard and Poor's (S&P), or P1 by Moody's Investors Service (Moody's);
- Commercial paper, including that of foreign issuers, (maximum term, 364 days) with a minimum issuer credit rating of R1 (low) by DBRS, or A-1 (mid) by S&P, or P1 by Moody's;
- Asset-backed commercial paper of eligible programs, with a minimum of two credit ratings, at least two ratings that are either R1 (high) by DBRS, A-1 (high) by S&P, P1 by Moody's, or F1+ by Fitch Ratings.
A minimum bid rate will apply. Further details will be announced on Friday, 17 October following consultations with market participants with respect to the term to maturity.
Acceptance of non-mortgage loan portfolio as eligible collateral
The margin (haircut) applied to the non-mortgage loan portfolio will be 40 per cent. Further details will be announced on Friday 17 October.