On 23 March 2020, the Federal Reserve announced that it is re-establishing the Term Asset-Backed Securities Loan Facility ("TALF") to facilitate the issuance of asset-backed securities ("ABS") on or after 23 March 2020.  As with the original TALF that was set up back in November 2008, the purpose of TALF is to encourage the issuance of ABS backed by consumer and small business loans.  This will in turn support US households, businesses and the US economy by promoting employment and stabilising the financial system during the current economic instability caused by COVID-19.

As with the original facility, Cayman Islands feeder funds can be set up to allow non-US and US tax exempt investors to provide capital to invest into eligible securities under the TALF program, and therefore provide investment opportunities and capital to support this critical part of the US market.

As with all Cayman Islands funds, they offer a well-understood and common vehicle for international investors with an ability to be incorporated quickly.  They can be provided in various legal forms depending on investor preference (exempt companies, LLCs and Exempted Limited Partnerships) with the backdrop of a well-known and respected court and legal system and an appropriate level of regulation for institutional investors along with a good level of corporate governance for investors.  Off balance sheet structured vehicles can also assist with any bankruptcy remote elements needed for risk and leverage purposes.

Further Information

If you need any further information with respect to the Maples Group's expertise and experience with TALF feeder funds and structured vehicles, please liaise with your usual Maples Group contact or one of the contacts listed below.

CONTACTS

bioImage

Tina Meigh

Partner

+1 345 814 5242

bioImage

Michael Richardson

Partner

+1 345 814 5532

*
*
*
*


Please note that your email may be received and read by other Maples Group employees in addition to your intended recipient.

The use of this form does not create an attorney-client relationship and information submitted will not necessarily be treated as privileged or confidential, nor will it prevent us from accepting related instructions on behalf of others. Do not send us any information regarding any current or potential legal matters until your proposed engagement of us as legal counsel has been agreed and confirmed by us in writing.

*
*
*

Please note that your email may be received and read by other Maples Group employees in addition to your intended recipient.

Connect

Want to get in touch ?

Contact Us