Mutual fund companies including BlackRock Inc
TALF (Term Asset-Backed Securities Loan Facility) aims to thaw the securities markets backed by credit card, small business, student and auto loans, but leverage ratios in TALF of as much as 20-to-1 effectively shut out mutual funds, which face leverage restrictions, the paper said.
We are trying to address this issue proactively, Curtis Arledge, co-head of BlackRock's U.S. fixed-income group, told the paper.
The firm has so far had one discussion with the SEC about the issue, Arledge told the paper.
The SEC did not immediately respond to a Reuters email seeking comment that was sent outside its normal business hours.
(Reporting by Jennifer Robin Raj in Bangalore, editing by Will Waterman)