Accounting for the Term Asset-backed Loan Facility (TALF)

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In depth , PwC US Jun 11, 2020

Information on how eligible borrowers can obtain a non-recourse loan from the Federal Reserve Bank of New York under the TALF program.



The Treasury and Federal Reserve recently announced the Term Asset-Backed Securities Loan Facility (TALF) to increase credit availability for consumers and businesses by facilitating the issuance of asset-backed securities (ABS). Under the TALF program, eligible borrowers will be able to obtain a non-recourse loan from the Federal Reserve Bank of New York (FRBNY), secured by eligible ABS collateral.

The non-recourse nature of the FRBNY loan limits investors' exposure to losses on the ABS collateral. The TALF program may, therefore, provide investors with a source of liquidity not available elsewhere in the current market, at potentially favorable interest rates. Investors in the TALF should carefully evaluate the provisions of the program to determine the appropriate accounting.

For a deeper discussion, please contact:

Tom Barbieri

Partner, National Professional Services Group, PwC US

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Chris Brabham

Partner, National Professional Services Group, PwC US

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Tom Knox

Partner, Financial Markets, PwC US

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Eliza Kwong

Partner, Financial Markets, PwC US

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Lauren Vanderpool

Director, National Professional Services Group, PwC US

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Kailee Balagia

Director, Financial Markets, PwC US

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David Schmid

David Schmid

International Accounting Leader, National Professional Services Group, PwC US

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