London law firm Kaye Scholer is urging European managers to seize the opportunities available to them under the Term Asset-Backed Securities Loan Facility ("TALF") by launching new funds as soon as possible. Investors have the opportunity to use attractive, non-recourse financing provided by the Federal Reserve Bank of New York to invest in AAA-rated asset-backed and commercial mortgage-backed securities.
TALF initially was created to kick-start the securitization markets. It has been generally successful both in reviving the issuance and reducing the spreads of consumer ABS, but the program has a scheduled sunset of Dec. 31.
"Investors must recognise that the $1 trillion TALF program is slotted to terminate by the end of the...
This article was originally published in Alternative Investment News.