To ensure clarity and legal certainty for investors and to encourage the development of the market for bank funding instruments, the order in which creditors get paid in bankruptcy proceedings should be standardized at the European level.
The announcement and presence of the TALF has helped improve substantially liquidity in the ABS markets, including those for CMBS and collateralized loan obligations, with spreads in some ABS sectors returning close to normal levels. The TALF interest rates are attractive to borrowers when market conditions are stressed, but not in normal conditions.