Term Asset-Backed Securities Loan Facility (TALF)

On March 23^rd, 2020, the Federal Reserve established the Term Asset-Backed Securities Loan Facility (TALF) program to ease the liquidity crisis caused by the COVID-19 global pandemic. The Federal Reserve will participate by lending loans to banks using Asset Backed Securities (ABS) as collateral. The program was initiated during the 2008 recession to address the liquidity crisis. Its previous success has provided the confidence for the Federal Reserve to re-launch it again during the current COVID-19 pandemic.