Term Asset-Backed Securities Loan Facility: non-CMBS

The Federal Reserve created the Term Asset-Backed Securities Loan Facility (TALF), to help market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities (ABS) collateralized by auto loans, student loans, credit card loans, equipment loans, floorplan loans, insurance premium finance loans, loans guaranteed by the Small Business Administration, residential mortgage servicing advances, or commercial mortgage loans. Eligible borrowers must use a primary dealer, which will act as agent for the borrower, to access the TALF and must deliver eligible collateral to the New York Fed’s custodian bank.

The following operations announcement pertains to non-mortgage-backed ABS:

Operation Announcement
Subscription Date: August 6, 2009
Closing Date: August 13, 2009
3-Year Maturity Date: August 13, 2012
5-Year Maturity Date: August 13, 2014
Facility Open: August 6, 2009 8:00 a.m. ET
Facility Close: August 6, 2009 3:00 p.m. ET
Administrative Fee: 10.00 basis points
Eligible Collateral: ABS1
Loan Term: 3 or 5 years
Rates for August 6, 2009 Facility:

Sector

Subsector

Fixed 3yr loan (Avg Life,
in years)

Fixed 5 year loan

Floating

<1

1-<2

>=2

Auto

1.8330

2.5865

3.2240

NA

1.27563

Credit Card

1.8330

2.5865

3.2240

NA

1.27563

Equipment

1.8330

2.5865

3.2240

NA

1.27563

Floorplan

1.8330

2.5865

3.2240

NA

1.27563

Premium Finance

Property and casualty

1.8330

2.5865

3.2240

NA

1.27563

Servicing Advances

Residential mortgages

1.8330

2.5865

3.2240

NA

1.27563

Small Business

SBA 7(a) loans

NA

NA

NA

NA

1.000

Small Business

SBA 504 loans

2.7240

3.5475

NA

Student Loan

Private with coupon tied to Prime

NA

NA

NA

NA

Higher of (Prime rate – 175 bps) and 1%

Student Loan

Other Private

NA

NA

NA

NA

1.27563

Student Loan

Gov't guaranteed

NA

NA

NA

NA

0.77563

Amount of TALF loans requested at August 6, 2009 Facility:

Sector

Amount

Auto

$555,333,750.00

Credit Card

$2,575,006,572.54

Equipment

-

Floorplan

$1,038,898,320.00

Premium Finance

-

Servicing Advances

$107,500,000.00

Small Business

$149,336,820.19

Student Loan

$2,450,702,728.31

Total

$6,876,778,191.04

1As defined in the terms & conditions
Recent Operations ››
H 4.1 Factors Affecting Reserve Balances
offsite