On April 9, 2020, the Board of Governors took additional action to expand the new TALF program. Notably, the program was expanded to broaden the range of assets that are eligible collateral for TALF. TALF-eligible collateral will now include the triple-A rated tranches of both outstanding commercial mortgage-backed securities and newly issued collateralized loan obligations. The program as expanded is described below.
The new TALF program is modeled on a similar credit facility established in 2008 to ensure the proper functioning of critical ABS markets during the Global Financial Crisis. However, the purpose of this TALF is different from the 2008 TALF and is generally focused to facilitate lending to consumers and businesses. This different objective manifests itself in some important differences between this TALF and the 2008 TALF as described herein.
Clifford Chance is developing structures to facilitate broad access to the program; please contact any of the individuals named here or your normal Clifford Chance contact for further information.