TSLF's Loans of Agency Debt

Another NY Fed program is the Term Securities Lending Facility (TSLF). Effective July 9, 2009, the Federal Reserve Bank of New York’s Open Market Trading Desk began to offer for loans direct obligations of housing-related government-sponsored enterprises (GSEs) Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. Note that such Agency debt are securities lent by the NY Fed (in addition to Treasuries and TIPS already available in previous auctions), not collateral pledged by borrowers. Since then, demand for Agency paper has been a success, and is trending higher:

(Source: NY Fed, dataforthoughts. Click to enlarge.)