The Federal Reserve Board ("FRB") provided additional information on borrower and collateral eligibility for the Term Asset-Backed Securities Loan Facility ("TALF"). The collateral eligibility requirements include provisions as to the date on which the securities were issued, the credit rating of the securities, the assets held supporting any asset-backed securities and prohibitions on collateral substitution.
Additionally, the FRB will begin disclosing monthly, for both the TALF and the Paycheck Protection Program Liquidity Facility, (i) the name of each participant in the facilities, (ii) the total amounts borrowed, interest rate charged, and pledged collateral value for each facility, and (iii) each facility's costs, fees and revenues.
Primary Sources
- FRB Press Release: Federal Reserve publishes updates to the term sheet for the Term Asset-Backed Securities Loan Facility (TALF) and announces information to be disclosed monthly for the TALF and the Paycheck Protection Program Liquidity Facility
- FRB Term Sheet: Term Asset-Backed Securities Loan Facility
Originally published 12 May 2020
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