Morgan Stanley Investment Management raised more than $600 million from institutional and high-net-worth investors for its TALF strategy, spokeswoman Erica Platt confirmed.
Client assets raised for the strategy exceeded the firm's initial target of $500 million. MSIM would not identify any investors in the strategy.
The strategy, investing in the federal government's Term Asset-Backed Securities Loan Facility, will focus on auto, credit card, small business and student loans. Consultants note that expected investment returns from those market segments have come down considerably in recent months from what was available in earlier auctions after the program was launched in March. Newer market segments just coming on line now, such as commercial mortgage-backed securities, should offer higher returns, consultants say.
Sanjay Verma is lead portfolio manager of MSIM's TALF strategy.
The TALF program will end in December.