End of TALF Could Spell Problems for Some Issuers

Some kinds of consumer-loan-backed securities will be at more of a disadvantage than others when the Federal Reserve in March winds down a program it has used to prop up the market. Stronger issuers and the higher-quality bonds won’t be affected, industry participants say. But weaker issuers, with deals backed by loans more likely to underperform, will lose out. Michael Wade of Barclays Capital in New York said the end of the central bank’s Term Asset-Backed Securities Loan Facility, or TALF, will have little effect on some asset classes like prime auto and credit cards.