Term Asset-Backed Securities Loan Facility
The Term Asset-Backed Securities Loan Facility (TALF) is designed to help market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities (ABS) collateralized by student loans, auto loans, credit card loans and loans guaranteed by the Small Business Administration (SBA). Eligible borrowers must use a primary dealer, which will act as agent for the borrower, to access the TALF and must deliver eligible collateral to the New York Fed’s custodian bank.
|Operation Dates:||March 17-19, 2009|
|Settlement Date:||March 25, 2009|
|Maturity Date:||March 26, 2012|
|Facility Open:||March 17, 2009, 10:00 a.m. ET|
|Facility Closed:||March 19, 2009, 5:00 p.m. ET|
|Administrative Fee:||5.00 basis points|
|Rates will be set at 12:00 p.m. on March 19, 2009.|
For ABS benefitting from a substantial government guarantee with average lives beyond five years, haircuts will increase by one percentage point for every two additional years of average life beyond five years. For all other ABS with average lives beyond five years, haircuts will increase by one percentage point for each additional year of average life beyond five years.