Comprehensive Talf finally launches in US

Author: | Published: 1 Apr 2009
The Fed listened to sponsors that warnedTalf restrictions would have a chilling effect

After more than three months, the US Treasury Department and Federal Reserve launched the Term Asset-Backed Securities Loan Facility (Talf) last month with some unexpected omissions.

"The Talf is designed to catalyse the securitisation markets by providing financing to investors to support their purchases of certain AAA-rated asset-backed securities," said the Treasury and Federal Reserve upon the announcement.

Participants will not be limited by Troubled Asset Relief Programme (Tarp) constraints, such as executive compensation and golden parachute restrictions. Before last month's announcement,...