Financial Times FT.com

Fed unveils terms of $200bn facility

By Aline van Duyn in New York

Published: February 7 2009 02:17 | Last updated: February 7 2009 02:17

The Federal Reserve on Friday revealed financing terms for a $200bn lending facility that is expected to entice hedge funds to buy securities backed by auto loans and credit cards.

The lending programme is aimed at providing much-needed financing for auto loans, credit cards and student loans in light of the collapse of the securitisation markets that have long been used for this purpose.

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