Skip to main content

Congressmen say TALF falls short on floorplanning

Several members of Congress sent a letter to Federal Reserve Chairman Ben Bernanke last week expressing concern with elements of the Term Asset-Backed Securities Lending Facility that could be deterring participation for non-auto floorplan asset-backed securities.

In March, non-auto floorplans were included as an eligible asset class in TALF. However, there has been no issuance of non-auto ABS to date largely because of the comparatively high "haircut levels" for non-auto ABS, according to the letter.

A "haircut" is the percentage amount deducted from the market value of the ABS to account for the risk of loss that the investment poses. The letter encourages the Treasury and the Fed to re-examine the haircut levels for non-auto ABS in order to increase liquidity in the marine industry.

"Access to credit and reasonably priced capital remain difficult for U.S. marine dealerships and manufacturers despite all recent recovery efforts," stated U.S. Rep. Pete Hoekstra, R-Mich., one of the members of Congress signing the letter. "Many lenders have left the market completely, causing job losses and an erosion of the marine industry."

Thom Dammrich, president of the National Marine Manufacturers Association, praised the bipartisan effort to increase liquidity in the secondary markets for dealer floorplan loans, calling it an "extremely critical issue" for the boating industry.

"We hope that Treasury Department and Fed officials recognize that the current haircut levels are discouraging investor and lender participation in this vital program," he said in a statement.

To read the full letter, click here.

Related

norm

Who Is Watching Us Fish?

NOAA has started electronic tracking of charter boats in the Gulf of Mexico. Could recreational anglers be next?

1_COX

Cox Expands Partnership with Gulf Yachts

The diesel outboard manufacturer said the agreement adds Bahrain and the UAE to Gulf’s territories in Qatar, Oman, Kuwait and Lebanon.

1_EVOY

Evoy Announces New Round of Capital

The Norwegian electric inboard and outboard manufacturer said it will use the funds to further develop its propulsion systems.

1_NEWPORTPRODUCTS

Newport Show Accepting Applications for Product Awards

The Newport for New Products program recognizes new boats, gear and more based on design, innovation and value to the consumer.

1_FREEDOMWISC

Freedom Boat Club Expands in Wisconsin

Parent Brunswick Corp. said it will open five new locations for this year’s boating season.

1_HEESE_TRIGG

ABC 2022: That’s a Wrap

The American Boating Congress concluded Friday with an award presentation, discussions with representatives, a midterm election report from political analyst Charlie Cook, and a panel discussion about electrification.

1_GODFREYELKHART

Godfrey Breaks Ground on Expansion

The company said the additional manufacturing and warehouse space in Elkhart, Ind., will enable an increase in production.

1_HIGHFIELD

Highfield USA Hires New President

The RIB builder said Christophe Lavigne will help develop the brand and operations in North America.