Search
 

NY Fed Lends $2.3B for Legacy CMBS

NEW YORK CITY-The amount was more than triple the amount that the bank issued in July, but there were no deals for newly issued CMBS.

By Paul Bubny | Updated on August 21, 2009

NEW YORK CITY-As if confirming speculation that the legacy CMBS program would start to gain traction as it went along, the Federal Reserve Bank of New York said Friday that it had gotten about $2.3 billion of requests for TALF loans to buy the securities in its August subscription round. The amount was more than triple the $669 million in loans that the New York Fed issued in July. However, for the third consecutive month since the program’s launch, no loans to buy newly issued CMBS were requested.

Investors were able to request loans of either three years or five years at rates of 3.0275% for three years or 3.8735% for five. Closing date on the loans is scheduled for August 28. The next round is scheduled for Sept. 17.

In a note to clients, Dr. Sam Chandan, founder of Real Estate Econometrics, wrote that the increase in requests for legacy support represents “a positive indication of the broader program’s ultimate potential. However, the absence of any requests for new CMBS three months after the finalization of the program’s expansion is disappointing. Aside from the expected lag from program announcement to deal structuring, we believe the delay also reflects investor concerns with structural issues in the CMBS market.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.