Merry TALF Day!

Today's the day that investors start applying to participate in the New York Fed's upcoming auction of triple-A rated asset securitizations through the Term Asset-Backed Securities Loan Facility (TALF - am I the only one who can has to check every time because I can't remember what TALF stands for?). According to the very handy TALF Cheat Sheet from Morrison & Forester, TALF loans are available to buy ABS secured by credit card loans, auto loans and Small Business Administration loans.

ABS financing is almost completely moribund. According to Thomson Reuters' 4th Q '08 Debt Capital Markets league table ABS deals are down 82% since the beginning of last year. TALF is supposed to get that ABS market humming again. So, the stakes are high for the New York Fed. As Reuters reports, they have rejigged the TALF master agreement to make it easier on investors. But, as Westlaw Business points out, caution is still warranted when entering the ABS market.

Investors will be applying to participate in an auction for asset-backed securities issued since January. The auction winners will get loans under TALF.