Nice terms, to buy these assets.
- Auto, credit cards and private student loans--LIBOR +100bps
- SBA loans--Fed funds +75bps
- 504 SBA loans --three year LIBOR +50bps
- Govt. guaranteed student loans--LIBOR+50bps
The "leverage" will depend on the haircut.
http://www.newyorkfed.org/markets/talf_terms.html
The bottom line is that 20%+ annual returns will be "earned" by participants in the TALF.
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