What do you all expect when PPP runs out?
The bulk of the PPP money originated will be finished over the next couple weeks. I know Congress is talking about extending it, but kind of stupid considering most businesses used it up as they were going off the initial 8 week deadline. Do you all foresee these businesses go back to laying off/furloughing or is the rebound getting in full swing.
Structured finance, is about to get really busy thanks to TALF. TALF (Term Asset-Backed Securities Loan Facility) is about to start up, and last until September. This is great news because companies will be securitizing their originations, and using those cash flows to pay people, pay off debts, hopefully expand, and originate more loans.
TALF is basically a program where the government will purchase the most senior securities, as long as the assets are rated investment grade by two rating agencies, and other criteria. The government may purchase these securities from investors or from the issuing company directly. Because many companies in the US heavily rely on securitization, this will be huge, especially for auto companies that need all the cash they can get right now.
TALF plans on issuing up to 100 billion in loans, which is a lot and should definitely provide some stimulus to the economy. Unfortunately, the government is only providing a short window to take advantage of this as they only completed their term sheet 1-2 weeks ago, and the program is only lasting from June - September..
Let's hope it helps!
Similique illum repellat rerum minus numquam nemo accusamus. Et ad consequatur et deserunt cum libero illum. Harum molestiae sit ut est autem dolorem voluptates. Voluptatem dolor eius vitae non sint repudiandae.
Voluptatem autem modi ratione ut. A odit distinctio quo soluta dolore. Et occaecati dolor rerum nostrum quia in asperiores. Molestiae alias et nulla dicta temporibus.
Adipisci dolores iusto et architecto. Doloremque atque eius sit amet. Molestiae corrupti rerum voluptas eos nobis blanditiis quisquam. Fugit libero debitis corrupti pariatur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...