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For immediate release: September 22, 2009

Dallas Fed: TALF Jump-Starting ABS Markets; Securitization May Be in Early Stages of Recovery

DALLAS—The Federal Reserve’s term asset-backed securities loan facility, or TALF, appears to be jump-starting securitization markets, which should contribute to an economic recovery, according to the most recent issue of the Federal Reserve Bank of Dallas’ Economic Letter

In “TALF: Jump-Starting the Securitization Markets,” research officer Kenneth J. Robinson finds that new securitization issues increased and risk spreads declined after the TALF began operations. 

While securitization activity might not grow as rapidly as earlier in this decade, “even a smaller, more homogenized securitization sector is important for reviving lending for both consumers and small businesses and for contributing to an economic recovery,” Robinson writes.


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