Term Asset-Backed Securities Loan Facility (TALF)
The Term Asset-Backed-Securities Loan Facility is the U.S. Federal Reserve's consumer-lending facility. The TALF was set up in November 2008 to spur the consumer-loan market by having the Fed lend up to $200 billion in public funds to investors who buy securities backed by car loans, credit card debt, student loans and small business debt. It is intended to jump-start the lending markets for education, autos, small businesses and credit cards.
Under the TALF, the Federal Reserve Bank of New York (FRBNY) will lend up to $200 billion to holders of certain AAA-rated ABS backed by newly and recently originated consumer and small business loans. The FRBNY will lend an amount equal to the market value of the ABS less a haircut and will be secured at all times by the ABS.