The Term ABS Loan Facility (TALF) is scheduled to close on March 31 for loans backed by all types of collateral except newly issued CMBS. The program will be ending on June 30 for loans backed by newly issued CMBS.
The Federal Reserve received the most loan requests in six months from investors for TALF's final round.
The Fed announced that for the program’s final subscription round, investors requested $4.1 billion in loans to purchase ABS backed by consumer debt.
Chrysler Financial Services America's over $2 billion auto lease transaction priced in this latest round. The lead managers on the TALF-eligible deal are Barclays Capital, BNP Paribas, Deutsche Bank Securities, Goldman Sachs and JPMorgan Securities.
Aside from Chrysler, Ford Motor Credit Co. also participated in this round with a deal that was upsized to $1.13 billion from $566.9 million. The dealer floorplan ABS is lead managed by Barclays, BNP, RBS Securities and Credit Suisse.
The student loan sector saw some activity as well. Sallie Mae has an over $1.5 billion SLABS offering backed by private student loans. Bank of America Merrill Lynch, Barclays, and JPMorgan are lead managers on the TALF-eligible transaction. Co-managers are Deutsche, RBS and Credit Suisse.
Meanwhile, Student Loan Corp. also has a TALF-eligible transaction backed by private student loans. The $683.2 million deal is lead managed by Citigroup Global Markets.
The Fed created TALF to support the issuance of 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.
The program has been largely credited for kickstarting consumer lending as well as opening up this segment of the securitization market.