It has become apparent that CMBS servicers and trustees need to clarify the issuer's ability to use the liquidity facility in examining swap counterparty failures, Barclays Capital said in a report released today.

The bank said that the ability to bridge a temporary shortfall, between the (unhedged) fixed-rate interest received on the loans and the floating rate interest on the bonds, is important in the short term for CMBS buyers to know whether interest will be paid on their bond class at the next interest payment date.

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