domain-B – Hedge funds will be allowed to borrow from the Federal Reserve for the first time under a landmark $200-billion programme intended to support consumer credit.

The new programme is aimed at injecting credit for consumers and small businesses including auto loans and credit cards will be launched in February.

The Fed said on Friday it would offer low-cost three-year funding to any US company investing in securitised consumer loans under the Term Asset-backed Securities Loan Facility (TALF). This includes hedge funds, which have never been able to borrow from the US central bank before.

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Tags: asset backed securities, auto loans, borrowers, consumer credit, consumer loans, consumers, credit-cards, eligible collateral, federal-reserve, interest-rate, landmark, loan facility, new-york-fed, securities loan, small businesses