TALF

Eligible collateral will include US dollar-denominated cash ABS

that have a long-term credit rating

in the highest investment-grade rating category

(for example, AAA)

from two or more major nationally recognized

statistical rating organizations (NRSROs)

and do not have a long-term credit rating

of below the highest investment-grade rating category

from a major NRSRO

 

Term Asset-Backed Securities Loan Facility (TALF)

 Terms and Conditions

If many who shouldn’t have

believed sub-prime debt could be repackaged

with similar credit risk characteristics as AAA US Treasuries

 

how can eligible collateral

for the US Treasury and Federal Reserve’s

Term Asset-Backed Securities Loan Facility (TALF)

include AAA rated auto, student, credit card, equipment, floorplan

or small business loans

 

if most auto, student, credit card, equipment, floorplan

and small business loans

are riskier than AAA rated Treasury debt?