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Full-Text Articles in Political Economy
The Term Asset-Backed Securities Loan Facility (Talf) (U.S. Gfc), June Rhee
The Term Asset-Backed Securities Loan Facility (Talf) (U.S. Gfc), June Rhee
Journal of Financial Crises
In the fall of 2008, the securitization market, which was the major provider of credit for consumers and small businesses, came to a near halt. Investors in this market abandoned not only the residential mortgage-backed securities that triggered the financial crisis but also consumer and business asset-backed securities (ABS), which had a long track record of strong performance, and commercial mortgage-backed securities (CMBS). Also, the unprecedented widening of spreads for these securities rendered new issuance uneconomical, and the shutdown of the securitization market threatened to exacerbate the downturn in the economy.
On November 25, 2008, the Federal Reserve (the Fed) …