Term Asset-Backed Securities Loan Facility
The Term Asset-Backed Securities Loan Facility (TALF) is the new term designed to help market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities (ABS) collateralized by student loans, auto loans, credit card loans and loans guaranteed by the Small Business Administration (SBA).
Eligible borrowers must use a primary dealer, which will act as agent for the borrower, to access the TALF and must deliver eligible collateral to the New York Fed’s custodian bank.
Term Asset-Backed Securities Loan Facility Operation Announcement
- Operation Date March 17, 2009
- Settlement Date March 25, 2009
- Maturity DateMarch 26, 2012
- Facility Open10:00 a.m. ET
- Facility Closed12:00 p.m. ET
- Administrative Fee5.00 basis points
- Eligible Collateral ABS1
- Term 3 years
First up is a phase that will lend up to $200 billion to hedge funds, in order to “jump start” the stalled auto lending market, as well as credit cards, education, and small businesses. Source: federal reserve bank of new york
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