TALF’s Legacy CMBS Spark Interest

ors requested $668.94 million in loans for legacy commercial mortgage-backed securities (CMBS), the New York Fed reported Thursday. The requests were part of a July 16 facility performed under the Federal Reserve's Term Asset-Backed Securities Loan Facility (TALF). The program, which is off to a slow start, was created to help support the issuance of asset-backed securities. Thursday was the first time existing commercial bonds were available through TALF and the second time that investors could apply for loans to buy new commercial mortgage-backed bonds. While the legacy facility drew investors, no investors applied for loans for new CMBS purchases. The rates for the July 16 facility were 3.0275% for fixed three-year loans and 3.8735% for fixed five-year loans. SOURCE: New Y

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