ELFA approves of Administration/Reserve launch of TALF.
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Press Release Summary:
ELFA commends Obama Administration and Federal Reserve Board for launch of Term Asset Backed Securities Loan Facility (TALF), which will catalyze securitization markets, increasing liquidity, credit availability, and overall economic activity. It will include asset classes such as asset backed securities (ABS) backed by small ticket equipment, heavy equipment, and agricultural loans and leases. According to Kenneth E. Bentsen, Jr., program will enable lenders to fund current loan demand.
Original Press Release:
Equipment Leasing and Finance Association (ELFA) Statement on the Launch of the Term Asset-Backed Securities Loan Facility (TALF)
Washington, DC, March 3, 2009 - The Equipment Leasing and Finance Association (ELFA) commends the Obama Administration and the Federal Reserve Board for their launch of the Term Asset Backed Securities Loan Facility (TALF) which the Fed and Department of Treasury jointly announced earlier today. The TALF program is designed to catalyze the securitization markets and thus increase liquidity, credit availability and overall economic activity.
In their announcement, the Federal Reserve and the Treasury stated they anticipate that TALF, which is a component of the Consumer and Business Lending Initiative (CBLI), will be expanded to include other asset classes including asset backed securities (ABS) backed by small ticket equipment, heavy equipment and agricultural loans and leases. The agencies anticipate that such loans and leases could be eligible for the April 2009 funding of the TALF.
"With the public securitization market at a virtual standstill since mid-2008, including the equipment finance ABS market, the ability of lenders to meet consumer and commercial loan demand has been greatly constrained," said ELFA President, Kenneth E. Bentsen, Jr. "The TALF, and its potential expansion to include commercial loans such as equipment leases and loans, will greatly enhance lenders' ability to fund loan demand and get the economy moving again," Bentsen said.
The ELFA, the trade association that represents companies in the $650 billon equipment finance sector, has called on the Federal Reserve and the Treasury to expand TALF to include ABS backed by equipment leases and loans. By including equipment leases and loans as eligible collateral under the TALF program, the Federal Reserve and the Treasury would help provide much needed liquidity to the secondary market for equipment finance assets while unlocking the equipment finance ABS market.
About the ELFA
The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $650 billion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its over 700 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers.
For more information, please visit www.elfaonline.org
