On May 12, 2020, the Board of Governors of the Federal Reserve System (the Federal Reserve) announced additional information and FAQs on its Term Asset-Backed Securities Loan Facility (TALF). The goal of the TALF is to help consumers and businesses access affordable credit during and in the aftermath of the Coronavirus Disease 2019 (COVID-19) pandemic by lending to holders of recently generated asset-backed securities (ABS) collateralized by certain types of consumer and business loans. The Federal Reserve will make up to $100 billion in loans available under the TALF. The Federal Reserve originally announced the program on March 23, and we discussed it in a previous GT Alert. On April 9, and again on May 12, the Federal Reserve expanded the class of assets that can qualify as TALF collateral.
Click here to read the full GT Alert, “Federal Reserve Releases New Information on the TALF.”