T1 and TALF: Difference between pages
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'' | ''COVID-19 - Global Financial Crisis (GFC) - US Treasury.'' | ||
TALF is an abbreviation for Term Asset-Backed Securities Loan Facility. | |||
It was created in 2008 in response to the Global Financial Crisis, and restarted in 2020 during the COVID-19 crisis. | |||
The TALF is designed to support the flow of credit to consumers and businesses. Is enables the issuance of asset-backed securities (ABS) backed by student loans, car loans, credit card loans, and certain other assets. | |||
Under the TALF, the Federal Reserve lends on a non-recourse basis to holders of certain AAA-rated ABS backed by newly and recently originated consumer and small business loans. The Federal Reserve lends an amount equal to the market value of the ABS less a haircut and will be secured at all times by the ABS. | |||
== See also == | == See also == | ||
* [[ | * [[AAA]] | ||
* [[ | * [[Asset backed finance]] | ||
* [[ | * [[Federal Reserve]] | ||
* [[ | * [[GFC]] | ||
* [[ | * [[Haircut]] | ||
* [[ | * [[Non-recourse]] | ||
* [[ | *[[TARP]] | ||
* [[ | *[[Treasury]] | ||
* [[ | *[[United States]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:The_business_context]] | |||
[[Category:Corporate_finance]] | |||
[[Category:Investment]] | |||
[[Category:Long_term_funding]] | |||
[[Category:Cash_management]] | |||
[[Category:Financial_products_and_markets]] | |||
[[Category:Liquidity_management]] | |||
Revision as of 22:57, 8 April 2020
COVID-19 - Global Financial Crisis (GFC) - US Treasury.
TALF is an abbreviation for Term Asset-Backed Securities Loan Facility.
It was created in 2008 in response to the Global Financial Crisis, and restarted in 2020 during the COVID-19 crisis.
The TALF is designed to support the flow of credit to consumers and businesses. Is enables the issuance of asset-backed securities (ABS) backed by student loans, car loans, credit card loans, and certain other assets.
Under the TALF, the Federal Reserve lends on a non-recourse basis to holders of certain AAA-rated ABS backed by newly and recently originated consumer and small business loans. The Federal Reserve lends an amount equal to the market value of the ABS less a haircut and will be secured at all times by the ABS.
