Policy Tools
Term Asset-Backed Securities Loan Facility
The Term Asset-Backed Securities Loan Facility (TALF) was a funding facility that helped market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities (ABS) collateralized by loans of various types to consumers and businesses of all sizes. Under the TALF, the Federal Reserve Bank of New York (FRBNY) loaned up to $200 billion on a non-recourse basis to holders of certain AAA-rated ABS backed by newly and recently originated consumer and small business loans. The FRBNY extended loans in an amount equal to the market value of the ABS less a haircut and these loans were secured at all times by the ABS. The U.S. Treasury Department--under the Troubled Assets Relief Program (TARP) of the Emergency Economic Stabilization Act of 2008--provided $20 billion of credit protection to the FRBNY in connection with the TALF. The TALF began operation in March 2009 and was closed for new loan extensions on June 30, 2010. The final outstanding TALF loan was repaid in full in October 2014.
Related Press Releases
- Federal Reserve Board announces agreement with Treasury Department regarding credit protection for the Term Asset-Backed Securities Loan Facility (TALF) (January 15, 2013)
- Federal Reserve announces agreement with the Treasury Department regarding a reduction of credit protection provided for the Term Asset-Backed Securities Loan Facility (TALF) (July 20, 2010)
- Federal Reserve adopts final rule establishing a process to determine the eligibility of credit rating agencies for the Term Asset-Backed Securities Loan Facility (TALF) (December 4, 2009)
- Federal Reserve announces changes to procedures for evaluating asset-backed securities pledged to the Term Asset-Backed Securities Loan Facility (TALF) (October 5, 2009)
- Federal Reserve and Treasury Department announce extension to Term Asset-Backed Securities Loan Facility (TALF) (August 17, 2009)
- Federal Reserve announces that certain high-quality commercial mortgage-backed securities will become eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF) (May 19, 2009)
- Federal Reserve announces expansion of eligible collateral under Term Asset-Backed Securities Loan Facility (TALF) (May 1, 2009)
- Federal Reserve announces two new interest rates applicable to loans extended under Term Asset-Backed Securities Loan Facility (TALF) (April 21, 2009)
- Treasury Department Releases Details on Public Private Partnership Investment Program (March 23, 2009)
- Board announces that the set of eligible collateral for loans extended by the Term Asset-Backed Loan Facility (TALF) is being expanded to include four additional categories of asset-backed securities (March 19, 2009)
- Treasury and Federal Reserve announce launch of Term Asset-Backed Securities Loan Facility (TALF) (March 3, 2009)
- Federal Reserve is prepared to expand Term Asset-Backed Securities Loan Facility (TALF) (February 10, 2009)
- Federal Reserve releases additional terms and conditions of the Term Asset-Backed Securities Loan Facility (TALF) (February 6, 2009)
- Federal Reserve releases revised information detailing operational aspects of Term Asset-Backed Securities Loan Facility (TALF) (December 19, 2008)
- Federal Reserve announces the creation of the Term Asset-Backed Securities Loan Facility (TALF) (November 25, 2008)