Search Investopedia

Term Asset-Backed Securities Loan Facility - TALF

Filed Under »
Dictionary Says

Definition of 'Term Asset-Backed Securities Loan Facility - TALF'

A program created by the U.S. Federal Reserve in November, 2008 to boost consumer spending to help jumpstart the economy. This is accomplished through the issuance of asset-backed securities. The collateral for these securities is made up of student, personal auto and credit card loans. Backing for these loans comes from the (up to) $1 trillion provided by the New York Federal Reserve Bank.
Investopedia Says

Investopedia explains 'Term Asset-Backed Securities Loan Facility - TALF'

This program is in place until December, 2009. Issuance of asset-backed securities continues only until that point. If, on that date, the government decides that the economic state has not improved up to an appropriate level, benefits of the plan are to be reassessed.

Related Definitions

  •

    Federal Reserve Bank

    The banks that carry out Fed operations, including controlling the money supply and regulating member banks. There are 12 District Feds, headquartered in Boston, New York, Philadelphia, ...
    Read More »

  • Economics

    A social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants. Economics can generally be ...
    Read More »

  • Mortgage-Backed Security (MBS)

    A type of asset-backed security that is secured by a mortgage or collection of mortgages. These securities must also be grouped in one of the top two ratings as determined by a ...
    Read More »

    • Recession

      A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade. The ...
      Read More »

    • Credit Crisis

      A crisis that occurs when several financial institutions issue or are sold high-risk loans that start to default. As borrowers default on their loans, the financial institutions that ...
      Read More »

    • Credit

      1. A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. The term also refers to ...
      Read More »

    • Asset

      1. A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. 2. A balance sheet item ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions