Although the underlying credit card and auto debt assets in the TALF funds are leveraged as much as 20:1, mutual fund companies anxious to invest in them are telling the Securities and Exchange Commission that they are structured as safe, non-recourse loans, the New York Daily News reports.

Thus, BlackRock and a number of other funds are asking the SEC to clarify leverage in the case of investing in these funds, which they believe can be quite profitable. They are also noting that TALF has failed to catch on among other investors, and that an infusion of interest from individual investors through mutual funds could greatly help the program.

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