The Federal Reserve has selected Trepp as a collateral monitor for legacy CMBS that fall under the Term Asset-Backed Securities Loan Facility (TALF).
The software firm will provide valuation, modeling, analytics and reporting, as well advise the Fed on these matters. However, Trepp will not establish policies or make decisions for the New York Federal Reserve, including whether to reject a CMBS as collateral for a TALF loan.
The Fed recently expanded TALF to include both newly issued and legacy CMBS. Today is the initial subscription date for TALF loans collateralized by newly issued CMBS. Meanwhile, certain legacy or high-quality CMBS issued before Jan. 1 will become eligible collateral under TALF beginning in July.