CMBS Collateral Expansion Will Improve Liquidity
This month, the Federal Reserve Board announced that, starting in June, commercial mortgage-backed securities (CMBS) will be eligible for collateral under the Term Asset-Backed Securities Loan Facility (TALF) program.
The inclusion of CMBS as eligible collateral will help:
- Prevent defaults on economically viable commercial properties,
- increase the capacity of current holders of maturing mortgages to make additional loans,
- and facilitate the sale of distressed properties.
The Board is allowing five-year maturities on these loans (compared to three years for all other TALF loans). Up to $100 billion is authorized, with the Board evaluating that limit as the program continues.
View the press release here.
For more information e-mail Claudia Kedda or call her at 800-368-5242 x8352.
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