The Federal Reserve Board on Friday released revised terms and conditions involving the program dubbed Term Asset-Backed Securities Loan Facility.
Under TALF, the Federal Reserve pledged to lend as much as $200 billion to holders of newly issued, highly rated, asset-backed securities collateralized by student loans, auto loans, credit card loans and loans guaranteed by the Small Business Administration. The program aims to revive the waning securitization market.
The revised terms of conditions include an extension of the TALF loan maturity to three years, from one. It also includes additional specification of eligible ABS collateral.
The TALF is expected to begin lending in February.
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