Evergreen Investments' money market funds sold some asset-backed commercial paper under a Federal Reserve program this week, The Boston Globe's Steven Syre reports.

Although Evergreen's funds didn't have liquidity problems, the firm wanted to find out how the program worked, according to an Evergreen spokeswoman.

"We did it as a test and found it worked well," the report quotes Evergreen spokeswoman Laura Fay as saying. "Of all the [government] programs, we think this one will have the most immediate and direct impact in restoring liquidity to the marketplace. It can address the root of the problem."

No word on whether firms such as Fidelity and Putnam Investments sold assets under the program.

The program, which began September 19, is aimed at helping restore liquidity to the asset-backed commercial paper market and aid money funds in meeting demands for redemption.

The program enables banks to borrow money to purchase asset-backed commercial paper. In the first three days of this week, the Federal Reserve of Boston extended a $72 billion loan to banks across the country, including State Street, according to the report. Money market funds are able to sell holdings to banks at full value. 

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