Increased investor interest and demand along with cheaper financing are expected to significantly boost the volume of asset-backed issuance in the next round of the Federal Reserve's Term Asset-Backed Securities Loan Facility. The program was launched in March, and May saw the largest ABS supply at $13.8 billion, much of which was financed through TALF loans. "As big as this month was, next month is going to be double that amount," said Dan Castro, Huxley Capital Management's chief risk officer. "The level of investor comfort with the program is growing, and there are still many deals in the pipeline that are going to come in June."

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