BlackRock Raising $500 Million for Second TALF Fund
BlackRock Inc. (NYSE: BLK) is looking to raise $500 million for its second TALF fund, according to marketing materials obtained by peHUB. TALF is an acronym for the U.S. government's Term Asset-Backed Securities Loan Facility program, which basically provides private investors with loans to buy up newly-issued, triple-A rated asset-backed securities (credit card loans, auto loans, student loans, small biz loans, etc). The goal was to free up consumer spending, and to include between $3 billion and $4 billion of eligible secutities. BlackRock raised "over 200 million" for its first TALF fund in March and April, and used it to purchase around $575 million in securities (preferred return threshold of 10%). TALF is scheduled to close at year-end (although some of the promised loans are good for three years), but has recently broadened to include legacy consumer ABS, legacy commercial mortgage-backed securities
