Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

Well, I think one advantage of it is that you are buying an option today for an auction that is going to take place several weeks in the future. That allows you to plan a little better what you need to do to actually be able to finance yourself over year-end. If you win the option, you know you have locked in that financing. Then you may behave differently in terms of how you manage your portfolio and how you manage your willingness to extend credit to other counterparties. I would say that is the major difference.

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