Some observers expect issuance of credit card-backed bonds to pick up substantially in the coming months, though lenders are weighing the costs of alternative sources of funding.

The Federal Reserve Board extended $2.8 billion of loans last month to fund the purchase of securities in a $3 billion offering by Citigroup Inc. in the first round of financing under the Term Asset-Backed Securities Loan Facility, a program initially designed to ease the flow of consumer credit. The next subscription date for Talf loans will be April 7.

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