These short - term financing arrangements (TAF & TSLF) are an attempt of the Fed to redirect liquidity from ordinary channels (fed funds and the like), to the short - term funding of banks and dealers
with acceptable collateral.
Not exact matches
Doing so comes
with some necessary logistic steps and some potential downsides, which I've listed below, but in this «war on spam» I have to consider that
acceptable collateral damage.
* Unsecured Personal loans are not backed by
collateral, thus may carry a slightly higher interest rate than a loan secured
with collateral and require an
acceptable credit score.
Acceptable collateral varies,
with differing haircuts depending on the
collateral and the financing program.