Bank Of America Offers $1.995 Billion Auto-Loan Backed TALF Deal
August 26 2009 - 3:33PM
Dow Jones News
Bank of America/Merrill Lynch is in the market with a $1.995
billion auto loan-backed deal, according to a person familiar with
the matter.
The deal is eligible for a Federal Reserve program, the Term
Asset Backed Securities Loan Facility, or TALF, through which
investors can procure cheap loans to buy newly created consumer
loan-backed and new and existing commercial mortgage-backed
bonds.
Bank of America's deal, dubbed BAAT 2009-2, is jointly led by
Bank of America/Merrill Lynch, Barclays Capital, Citigroup, Credit
Suisse and Royal Bank of Scotland.
Last month, Bank of America (BAC) sold a $3.993 billion
auto-loan backed deal at 135 basis points over a benchmark. That
was the bank's first deal eligible under TALF.
-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227;
anusha.shrivastava@dowjones.com