The Federal Reserve has authorized the Federal Reserve Bank of New York to extend through Jan. 30 its term securities lending facility, including the TSLF 2 that allows primary dealers to collateralize draws with certain mortgage-related securities. Collateral for the TSLF 2 includes mortgage-backed securities issued or guaranteed by federal agencies, federal agency debt securities, triple-A rated private-label residential MBS, commercial MBS, and asset-backed securities. The move is one of a series of steps the Fed has taken to provide a wider range of liquidity facilities. Some related actions have also been taken by the European Central Bank and the Swiss National Bank.
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