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.
It 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.