News analysis: a revised TALF could jolt ABS issuance

Tuesday 23 December 2008 at 08:52

The Federal Reserve could begin to unfreeze consumer credit via its latest revisions of a loan program for holders of asset-backed securities collateralised by consumer loans, according to analysts at market research firm TowerGroup.

The Fed last week extended the loan maturity of the Term Asset-backed securities Loan Facility from one to three years, and has allowed TALF loans to be distributed to borrowers with eligible collateral rather than via auctions.