Hat tip reader Michael who points out that Nissan has launched a presumably heavily oversubscribed TALF deal which is a "AAA"-rated four-part sale that includes a 0.32 percent issue offered at a spread of 40 basis points over one month Libor, a one-year issue offered at 185-200 basis points over eurodollar swap futures and two-year and 3.16 year notes at spreads of 200 to 225 basis points and 325 to 350 basis points over swaps.
"First TALF deal goes off and its heavily oversubscribed. Its possible equities are continuing to rally based on the premise that the securitization market might be returning to some kind of life. AAA rated deal goes off 1mo LIBOR + 40bps."
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7 comments:
This seems important.
Thought only put out reds and taking indications today with deal Px & Launch on Thurs? Is the bank talking up book already or they actually taking orders now?
Does this mean banks will finally lend to each other, ending a broken banking system?
Story is on Bloomberg and Reuters too. This is a very good sign that demand still might exist for ABS issues
http://www.reuters.com/article/ousiv/idUSTRE52G6LV20090317
Great we can now reinflate the Bubble via the Treasury, now all we have to do is wait for the Treasury market to implode.
Think I'm missing something... Can someone tell me why the "private equity / capital" investor is needed in this program ? Isn't the taxpayer just giving away free money ? Yes , the benefit of generating more consumer credit is good, but since the loans are NO RECOURSE and MATCH FUNDED to the assets, why does the taxpayer need the private entity? The taxpayer could just keep all the spread and, create the availability of consumer credit.
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