Capital – Money managers, including hedge funds, mutual and pension funds borrowed $71.1 billion under the Federal Reserve’s Term Asset-Backed Securities Loan Facility, according to a filing Wednesday on the central bank’s website.
Through the program, known as TALF, the central bank offered low-cost loans to investors for a year, enticing them to buy high-quality bonds backed by consumer finance loans, such as auto loans and credit-card debt. Since its introduction last March, TALF aided the sale of more than $100 billion in bonds backed by auto, student and equipment loans and credit-card debt–the bulk of all the asset-backed deals sold in the U.S.
