Standish Mellon Asset Management Company LLC, the fixed income specialist for BNY Mellon Asset Management, will offer investment strategies that will enable its clients to invest in securities related to the Term Asset-Backed Securities Loan Facility (TALF). Standish It expects to begin investing client money by early July.
Standish will create two separate investment strategies. The first will target new issues of consumer ABS and commercial mortgaged-backed securities (CMBS). The second is designated as an Expanded TALF strategy that will include legacy assets such as non-agency CMBS, consumer ABS and non-agency residential mortgaged-backed securities (RMBS).
“We believe that investors who are the early buyers of asset-backed securities (ABS) in the TALF Program have the potential for the biggest gains,” says Desmond Mac Intyre, president and chief executive officer, Standish. “As more money flows into these investments, the overall spreads should tighten and the opportunities for strong returns will diminish.”
“However, it is important to remember the TALF program is essentially a buy-and-hold strategy which is dependent on strong upfront securities selection and price discovery. That is why our strong research team will be invaluable as we determine which securities are most attractive for our investors.”
“We view the TALF initiative as having the potential to be the most successful of the government programs aimed at resuscitating financial markets,” says Tom Graf, managing director of structured products and global workout solutions. “It is among the least expensive programs, has already established strong momentum, and continues to have growing participation. We stand ready to structure strategies to meet various client needs as they seek to invest in this program.”
L.D.