The New York Federal Reserve recently announced that investors made a request for $4.7 billion during the initial round of its consumer and small business lending program. And guess how much is on offer? $200 billion on offer. Now thats a huge difference. So much on the table for grabs yet very few takers.
Out of the 4.7 billion dollars requested by the investors (I like calling them high rollers), about 1.9 billion dollars was requested to buy securities that are supported by auto loans. And about 2.8 billion for loans to buy credit card securities.
Suprisingly, there was zilch request for loans for securities backed by student or small business loans during the period of March when the subscription period for the first round of the Fed’s Term-Asset Backed Securities Loan Facility, known by its acronym TALF was on offer.
The U.S. main bank had promised to put up for grabs about $200 billion eventually in this month’s round and said the financial program could grow as big as upto $1 trillion.
How do you end up using this information to your financial benefit? I am not sure but who ever can figure this out can make a decent income.
If you are interested to read further about this program, check out this article on TALF Federal Loan Program and FAQ.