Morgan Stanley Investment Management (MSIM) has raised over $600 million in capital from qualified high net worth and institutional investors. It is part of a strategy investing primarily in securities eligible to serve as collateral under the Term Asset-Backed Securities Loan Facility (TALF) offered by the Federal Reserve Bank of New York. The $600 million in total capital raised exceeded MSIM’s initial $500 million target.
MSIM’s TALF strategy involves capitalizing on market disruptions by sourcing undervalued credits and attractive cash flows inherent in securities, eligible to serve as collateral under TALF. The TALF strategy will predominantly invest in auto, credit card, small business and student loans, all of which have a AAA rating from two or more agencies.
Randy Takian, head of the Morgan Stanley Retail and Intermediary business for MSIM said: We are very pleased to give clients the ability to take advantage of this limited opportunity to invest in TALF eligible securities along with the non-recourse financing being offered through the program.
Sanjay Verma, lead portfolio manager of MSIM’s TALF strategy, commented: Morgan Stanley has been investing in the ABS market since its inception in 1985 and our team has extensive experience conducting security selection and credit work, sourcing collateral and providing industry-wide access to deal flow, and providing ongoing portfolio oversight. We are proud to participate in a program designed to facilitate available credit to households and small businesses, while also giving our investors access to a unique opportunity to invest in high quality securities.
