TALF: Difference between revisions

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imported>Doug Williamson
(Create page. Sources: Investopedia https://www.investopedia.com/terms/t/talf.asp and Federal Reserve https://www.federalreserve.gov/monetarypolicy/talf.htm)
 
imported>Doug Williamson
(Mend link.)
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== See also ==
== See also ==
* [[AAA]]
* [[AAA]]
* [[Asset-backed securities]]
* [[Asset backed finance]]
* [[Federal Reserve]]
* [[Federal Reserve]]
* [[GFC]]
* [[GFC]]

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.


See also