TALF benefits for ABS have mostly run out, investors say

Federal Reserve 575 373
By Jennifer Kang
18 May 2020

The Federal Reserve’s Term Asset Backed Securities Loan Facility succeeded in boosting investor confidence and providing a backstop to further spread widening, but sources say that key limitations in the scope of the programme, even with the most recent expansion last week, mean that the benefits have mostly already been felt.

The central bank released new details for TALF 2.0 on May 12, providing an updated term sheet and an expanded FAQ. The eligible asset classes remain unchanged, and include on-the-run sectors like auto, credit card, equipment and student loan ABS. The programme also includes high quality CMBS and ...

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