Markets

Mar 22: GREG PETERS on Fed's moves and the Talf

Part 1: Greg Peters, head of global fixed income and economics research at Morgan Stanley, says the Federal Reserve's move to buy US Treasuries and billions of dollars of mortgage debt took the markets by surprise and may help in the short-term. The term asset-backed securities loan facility (Talf) is an important step in reviving the securitisation markets and restoring financing of consumer lending. "There's been a lot of roadblocks and impediments to finding success there, and I do think ultimately it will work, but I fear that it will underwhelm." Mr Peters says investors are concerned about the potential for retribution, and that the government may claw back profits, a reflection of the current political environment.