FACTBOX: The Fed's evolving liquidity toolkit

(Reuters) - The U.S. Federal Reserve on Tuesday said it would extend the terms of three emergency liquidity programs by three months, to April 30, 2009.

The Fed said the extension made the Primary Dealer Credit Facility (PDCF), the Asset-Backed Commercial Paper Money Market Fund Liquidity Facility (AMLF) and the Term Securities Lending Facility (TSLF) consistent with the terms already authorized for other liquidity facilities.

The following is a look at the Fed's evolving liquidity toolkit.

DISCOUNT WINDOW

The discount window is the Fed's traditional way of providing liquidity to depository institutions that it regulates. The Fed's first liquidity salvo was on August 17, 2007, when it unexpectedly lowered the discount rate by a half percentage point, narrowing the spread above the benchmark federal funds rate -- the rate banks charge each other for loans -- to a half percentage point. It narrowed the spread to just a quarter point on March 16. The Fed accepts a broad range of collateral for loans at the discount window.

SHORING UP MONEY MARKET MUTUAL FUNDS, MORTGAGE DEBT

The Fed on September 19 said it would make discount window loans to financial institutions to allow them to buy asset-backed commercial paper from money money market mutual funds. It also said it would buy notes issued by mortgage agencies Fannie Mae, Freddie Mac and Federal Home Loan Banks. On November 26 the Fed expanded those potential purchases by $100 billion and mortgage security purchases by $500 billion.

TERM ASSET-BACKED SECURITIES LOAN FACILITY

The Fed on November 25 announced it will lend up to $200 billion on a non-recourse basis to holders of some AAA-rated asset-backed securities (ABS) that hold fresh consumer and small business loans. The Treasury will pitch in $20 billion to help underwrite those investments.