Term Asset-Backed Securities Loan Facility Rates

The Term Asset-Backed Securities Loan Facility (TALF) is designed to support the flow of credit to consumers and businesses by enabling the issuance of asset-backed securities (ABS) backed by student loans, auto loans, credit card loans, loans guaranteed by the Small Business Administration (SBA), leveraged loans, commercial mortgages, and certain other assets. Eligible borrowers must use a TALF Agent, which will act as agent for the borrower, to access the TALF and must deliver eligible collateral to the TALF custodian bank.

Eligible and Ineligible ABS:

Collateral Eligibility Determinations

The New York Fed retains the right to reject any ABS as TALF collateral, as further described in the TALF FAQs. The link below provides a list of ABS that the New York Fed has determined to be TALF-eligible and those ABS that Borrowers proposed as eligible collateral but the New York Fed has determined to be ineligible.

The New York Fed has also determined the following ABS to be TALF-eligible as of the referenced date, based on the information submitted by the issuer and its accounting firm.

  • CUSIP # 83390UAF4, as of June 23, 2020
  • CUSIP # 69335PDR3, as of June 23, 2020

The eligibility determination described above was made as of the date indicated and does not guarantee that such ABS will remain eligible or be accepted for future loan requests.

As noted in the TALF FAQs, loan requests may be rejected for a number of reasons not having to do with the eligibility of the proposed collateral.


TALF Interest Rates:
Sector Subsector Fixed 3yr loan
(Avg Life, in years)
<2
>=2
Floating
Auto   2-year OIS
rate
+ 125 bps
3-year OIS
rate
+ 125 bps
N/A
Commercial Mortgage   2-year OIS
rate
+ 125 bps
3-year OIS
rate
+ 125 bps
N/A
Credit Card   2-year OIS
rate
+ 125 bps
3-year OIS
rate
+ 125 bps
N/A
Equipment   2-year OIS
rate
+ 125 bps
3-year OIS
rate
+ 125 bps
N/A
Floorplan   2-year OIS
rate
+ 125 bps
3-year OIS
rate
+ 125 bps
N/A
Leveraged Loan   N/A N/A 30-day average SOFR + 150 bps
Premium Finance   2-year OIS
rate
+ 125 bps
3-year OIS
rate
+ 125 bps
N/A
Small Business SBA 7(a) loans N/A N/A Top of Fed Funds Range + 75 bps
Small Business SBA 504 loans 3-year OIS rate
+ 75 bps
3-year OIS rate
+ 75 bps
N/A
Student Loan Private 2-year OIS
rate
+ 125 bps
3-year OIS
rate
+ 125 bps
N/A

Operation
Subscription Date: July 6, 2020
Closing Date: July 15, 2020
3-Year Maturity Date: July 17, 2023
Facility Open: 9:00 a.m. ET
Facility Close: 2:00 p.m. ET
Administrative Fee: 10.00 basis points
 

Loan Rate Benchmark for July 6, 2020 Subscription:
Loan Rate Benchmark All-in Rate(%)
30-day SOFR Average 1.58
Top of the Fed Funds Target Range 1.00
2-year OIS 1.25
3-year OIS 1.25
3-year OIS (SBA 504 loans) 0.75
TALF loan rates are published by the New York Fed solely to inform market participants about the rates that will be applied to TALF loans for various types of ABS proposed as collateral on a given subscription date. The rates are not intended to be a measure of market conditions and should not be used as benchmark rates for other transactions.

TALF loans requested at July 6, 2020 Subscription:
Sector Amount
Auto $0
Commercial Mortgage $223,820,194
Credit Card $0
Equipment $0
Floorplan $0
Leveraged Loan $0
Premium Finance $51,142,943
Small Business $440,400,661
Student Loan $7,791,950
Total $723,155,749


Previous Subscriptions
Operation
Subscription Date: June 17, 2020
Closing Date: June 25, 2020
3-Year Maturity Date: June 26, 2023
Facility Open: 8:00 a.m. ET
Facility Close: 3:00 p.m. ET
Administrative Fee: 10.00 basis points
 

Loan Rate Benchmark for June 17, 2020 Subscription:
Loan Rate BenchmarkAll-in Rate(%)
30-day SOFR Average1.56
Top of the Fed Funds Target Range1.00
2-year OIS1.29
3-year OIS1.30
3-year OIS (SBA 504 loans)0.80
TALF loan rates are published by the New York Fed solely to inform market participants about the rates that will be applied to TALF loans for various types of ABS proposed as collateral on a given subscription date. The rates are not intended to be a measure of market conditions and should not be used as benchmark rates for other transactions.

TALF loans requested at June 17, 2020 Subscription:
Sector Amount
Auto $0
Commercial Mortgage $145,213,948
Credit Card $0
Equipment $0
Floorplan $0
Leveraged Loan $0
Premium Finance $55,792,506
Small Business $51,150,000
Student Loan $0
Total $252,156,454

TALF loans settled for June 17, 2020 Subscription:
Sector Amount
Auto $0
Commercial Mortgage $145,213,948
Credit Card $0
Equipment $0
Floorplan $0
Leveraged Loan $0
Premium Finance $55,791,942
Small Business $51,150,000
Student Loan $0
Total $252,155,890