Term Asset-Backed Securities Lending Facility (TALF)
The Term Asset-Backed Securities Lending Facility (TALF) is a Federal Reserve program that was created in 2008 to help stimulate the economy during the financial crisis. The program provides loans to investors in order to purchase asset-backed securities (ABS) that are backed by consumer and small business loans. The loans are provided at a low interest rate and are secured by the ABS. The goal of the program is to increase the availability of credit to consumers and businesses, which in turn will help stimulate economic growth.
History of TALF
The TALF program was created in 2008 as part of the Troubled Asset Relief Program (TARP). The program was designed to help stimulate the economy by providing low-cost loans to investors who purchase asset-backed securities. The program was initially funded with $200 billion in TARP funds and was later expanded to $1 trillion. The program was designed to help increase the availability of credit to consumers and businesses, which in turn would help stimulate economic growth.
Comparison Table
| Program | Funding | Interest Rate |
|---|---|---|
| TALF | $1 trillion | Low |
| TARP | $700 billion | N/A |
Summary
The Term Asset-Backed Securities Lending Facility (TALF) is a Federal Reserve program that was created in 2008 to help stimulate the economy during the financial crisis. The program provides loans to investors in order to purchase asset-backed securities (ABS) that are backed by consumer and small business loans. The loans are provided at a low interest rate and are secured by the ABS. For more information about the TALF program, please visit the Federal Reserve website or the U.S. Treasury website.
See Also
- Troubled Asset Relief Program (TARP)
- Asset-Backed Securities (ABS)
- Federal Reserve
- U.S. Treasury
- Mortgage-Backed Securities (MBS)
- Commercial Mortgage-Backed Securities (CMBS)
- Collateralized Debt Obligations (CDOs)
- Credit Default Swaps (CDS)
- Securitization
- Quantitative Easing (QE)
