It appears that the market for newly issued AAA ABSs has somewhat normalized based on the fact that TALF lending has held steady at around $40 to $45 billion for nearly six months. The facility will stop making loans on collateralized by newly issued CMBS’s on 6/30/10 and all other loans collateralized by other types of TALF eligible newly issued and legacy ABS on 3/31/10. Unless this support is extended by the Board of Governors I imagine that the 3/31/10 deadline might be the first real test of the health of the securitized market. Remember that these are non-recourse loans and that the U.S. Treasury has provided $20 billion of credit protection to the Federal Reserve Bank of New York via the SPV that is purchasing these ABSs.
Source: Federal Reserve Bank of St. Louis