The market was in brighter spirits before the Thanksgiving holiday, as ABS market participants quite fittingly gave thanks to U.S. Treasury Secretary Henry Paulson, who rolled out a Term Asset-Backed Securities Loan Facility (TALF) under which The Federal Reserve Bank of New York will establish a $200 billion one-year, non-recourse lending facility for newly or recently originated triple-A rated consumer ABS (see story p. 16). This covers auto, credit card, student loans and small business loans that are guaranteed by the U.S. Small Business Administration.

On initial news of the plan, ABS players were optimistic it might provide a long-awaited liquidity boost to the industry.

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