Asset-Backed Securities Loan Facility

The Asset-Backed Securities Loan Facility (ABSLF) is a program set up by the Federal Reserve to provide financial support during economic stress. It allows banks and financial institutions to borrow money using asset-backed securities—financial products backed by loans, leases, or receivables—as collateral. By doing this, the ABSLF helps ensure that these institutions have enough liquidity to continue funding loans and supporting the economy, helping to stabilize financial markets when times are tough.