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Tuesday's updates to the terms of the Term......>

FED
FED: Tuesday's updates to the terms of the Term Asset-Backed Securities Loan
Facility (TALF) highlights that Fed is being as conservative as it can with
CLOs. 
* Only newly issued CLOs are eligible and the haircuts are 5pp higher than other
loan types. Other requirements include detailed credit rating criteria and that
one lead arranger be a U.S. bank. 
* Haircuts for other eligible loan types are essentially same as the 2009 TALF. 
* Residential mortgage servicing advances, previously eligible collateral in the
initial TALF term sheet and back in 2009, were removed last month without
explanation. 
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

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