Private SLABS, floorplan ABS only remaining beneficiaries of TALF

Federal Reserve 575 373
By Jennifer Kang
22 Jun 2020

Securitization spreads began their recovery before the Federal Reserve officially started financing holders of the bonds via its Term Asset-Backed Securities Loan Facility (TALF) this month, confirming for many in the market that the program is too narrow to be of great use. However, sources say that investors can still find attractive returns by tapping TALF funds for off the run sectors like private student loan and floorplan ABS.

TALF loans requested by the first subscription date in June fell far short of the amount seen in the same period of the 2008 version of the program, with take-ups of TALF loans coming in at just $252mn. Most of that consisted of CMBS, with a smaller ...

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