Tuesday, May 19, 2009

TALF expanded to Legacy CMBS

Realpoint and DBRS were recognized as actual rating agencies in the same release - the world is really changing around us...

from Bloomberg:

Fed says legacy CMBS will become eligible for TALF The Federal Reserve Board announced that, starting in July, certain high-quality commercial mortgage-backed securities issued before January 1, 2009, or legacy CMBS, will become eligible collateral under the Term Asset-Backed Securities Loan Facility, or TALF. The TALF is designed to increase credit availability and support economic activity in part by facilitating renewed issuance of consumer and business asset-backed securities and CMBS. To be eligible as collateral for TALF loans, legacy CMBS must be senior in payment priority to all other interests in the underlying pool of commercial mortgages and, as detailed in the attached term sheet, meet certain other criteria designed to protect the Federal Reserve and the Treasury from credit risk. The FRBNY will review and reject as collateral any CMBS that does not meet the published terms or otherwise poses unacceptable risk.

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