Several Asset-Backed Deals Emerge Ahead Of TALF Deadline
October 29 2009 - 9:20AM
Dow Jones News
Issuers are offering several asset-backed securities deals this
week, some of which are eligible for funding under a Federal
Reserve program.
Bank of America Auto Trust has a $2.027 billion deal that is
eligible for cheap funds under the Fed's Term Asset-Backed
Securities Loan Facility, or TALF, according to a person familiar
with the matter. The next loan application deadline for the program
is Nov. 3 for the consumer loan-backed deal portion of TALF,
credited with boosting the ABS market.
General Electric Small Ticket has a $654.197 million
TALF-eligible deal and GMAC's Ally Bank has a $884.856 million
prime auto loan-backed deal that is also eligible for TALF.
World Omni Auto Lease has a $1.04 billion deal for which
investors cannot tap the Fed for non-recourse loans.
The securitization market is seen as crucial for increasing the
flow of credit in the market as it lowers the cost of borrowing for
consumers.
Banks package loans into bonds that are sold to investors,
clearing the way for decreasing the cost of new loans.
-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227;
anusha.shrivastava@dowjones.com