dual announcement of the smccf and pmccf was well received by the market. between march 23 and april 6, credit spreads for investment - grade bonds declined substantially. while the pmccf has not purchased any bonds since it opened, it serves as a backstop should markets enter another period of stress. the term asset - backed securities loan facility the term asset - backed securities loan facility ( talf ) supports the flow of credit to consumers and businesses by enabling the issuance of asset - backed securities ( abs ) guaranteed by newly and recently originated consumer and business loans. 4 / 5 bis central bankers'speeches under the talf, the federal reserve bank of new york lends to an spv. the spv will make up to $ 100 billion of three - year term loans available to holders of certain triple a - rated abs backed by student loans, auto loans, credit card loans, loans guaranteed by the small business administration ( sba ), and certain other assets. the federal reserve lends an amount equal to the market value of the abs less a haircut and the loan is secured at all times by the abs. with funding from the cares act, treasury has committed to make a $ 10 billion equity investment in the spv. as of september 18, the talf has extended $ 2. 9 billion in loans since its launch on may 20. loans have been collateralized by sba - guaranteed abs, commercial mortgage - backed securities ( cmbs ), and premium - finance and student - loan abs. 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. while the facility is authorized to extend up to $ 100 billion in loans, total take - up will likely be much less unless abs market conditions worsen. 5 / 5 bis central bankers'speeches

rather the stock of assets that the central bank is expected to hold on its balance sheet. for instance, if the central bank announces a longer reinvestment horizon, it means that more duration risk is expected to be withdrawn from the market over a longer interval. the duration withdrawal leads to declining expected excess returns in the future. but those future excess returns are part of the current term premium embedded in a long - term bond. it follows that a longer reinvestment period in the future helps keep bond yields at low levels now. similar to analysis that accompanied the asset purchases of the federal reserve, ecb economists have quantified the effect of our asset purchases on the yield curve. based on a term structure model that incorporates the duration extraction channel that i just explained, chart 8 shows estimates of how much the app has compressed the yield curve in the euro area at different points in time. chart 8 app impact on the euro area sovereign term structure ( basis points ) sources : ecb, based on eser et al. ( 2019 ). notes : the figure shows by how much the term premium component of euro area sovereign yields ( weighted average of germany, france, italy and spain ) with maturities of one to ten years is estimated to be compressed due to the app through the duration channel at three dates : the announcement of the app ( jan 2015 ), the extension of the programme in june 2018, and the announcement of the restart of net purchases in september 2019. chart 9 app impact on ten - year euro area sovereign yield over time ( basis points ) sources : ecb, based on eser et al. ( 2019 ). notes : evolution of the app impact on the ten - year synthetic sovereign yield ( weighted average of germany, france, italy, spain ). the impact is derived on the basis of an arbitrage - free affine model of the term structure with a quantity factor ( see eser et al. 2019 ). latest observation : september 2019. the first point is january 2015 when the ecb had just announced that it would start purchases in the following march at a rate of €60 billion per month, intended to run until september of the following year. according to ecb staff estimates, the anticipation of the purchases, the associated balance sheet accumulation of the ecb and, as a flip side of the coin, the expected duration extraction were associated with a term premium compression of almost 50 basis points for the ten - year maturity. for shorter - term bonds