ABS cheers TALF 2.0 but bemoans limited scope

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By Jennifer Kang
24 Mar 2020

The Federal Reserve continued its roll-out of initiatives to support the economy through the Covid-19 crisis this week, including the revival of the term asset-backed loan facility (TALF). However, market participants say the program is incomplete as long as it omits certain asset classes, specifically private label CMBS, and worry that some sectors will buckle without the support of the central bank.

On Monday, the central bank launched a wave of programs that touch all parts of the capital markets, including the unlimited purchase of Treasury and agency MBS as well as the establishment of primary and secondary market corporate credit facilities. 

Most relevant to structured finance markets was ...

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