Finance CMBS
May 4, 2009
The Federal Reserve’s Term Asset Backed Securities Loan Facility has been expanded to cover commercial real estate backed securities and loans. The acceptance of CMBS into the program comes in the form of the TALF now extending loans with five-year terms, which better match the needs of CMBS investors. Previously, the loans were only for three years and were aimed at consumer credit, such as car loans and credit cards. The five-year loans for CMBS purchases will begin in June, and the Fed will extend up to a total of $100 billion in such loans. With a large amount of commercial real estate debt coming due soon, the TALF program was critical to getting credit flowing again, according to many observers.
The Federal Reserve’s Term Asset Backed Securities Loan Facility has been expanded to cover commercial real estate backed securities and loans. The acceptance of CMBS into the program comes in the form of the TALF now extending loans with five-year terms, which better match the needs of CMBS investors. Previously, the loans were only for three years and were aimed at consumer credit, such as car loans and credit cards. The five-year loans for CMBS purchases will begin in June, and the Fed will extend up to a total of $100 billion in such loans. With a large amount of commercial real estate debt coming due soon, the TALF program was critical to getting credit flowing again, according to many observers.
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