"This is a good start for a program that we will continue to build on in the future," said Federal Reserve Bank of New York President William C. Dudley in a press release. "Our goal is to get the securitization market working again."
But a number of observers had hoped to see a stronger debut. You have to wonder if TALF's underwhelming debut has something to do with the public flogging AIG, Merrill Lynch and others have endured in recent weeks. Hedge fund managers we've spoken to have expressed growing unease about doing business with the government, especially if exposes them to public scrutiny of their business practices and compensation regimes.
The next round of TALF is scheduled for the second week of April.