Sandra Ward

Document Type

Lessons Learned

JEL Codes

G01, G29


While working as a senior trader and analyst with the Federal Reserve Bank of New York’s Markets Group in 2008–11, Zoltan Pozsar became intrigued by the existence of a “shadow banking system” involving securitized assets. He dedicated himself to understanding the linkages of the then obscure and overlooked asset-backed securities (ABS) market and the role it played in keeping markets liquid and functioning. Pozsar’s research laid the groundwork for the Term Asset-Backed Securities Loan Facility, or TALF, which was instrumental in restarting the flow of credit during the Global Financial Crisis. This “Lessons Learned” is based on an interview with Pozsar in September 2021.