Investors requested $2.28 billion in loans under the latest subscription deadline for the Federal Reserve’s legacy CMBS Term ABS Loan Facility (TALF), expanding from the muted $668.9 million in bids during the first round of financing on July 16.

Thursday’s legacy CMBS-eligible TALF facility bears rates of 3.03% on fixed three-year loans and 3.9% on fixed five-year loans. The facility closes Aug. 28.

JPMorgan Securities analysts said in a research note that a healthy subscription to the loan legacy program could reignite a rally in CMBS market, which, over the past weeks, has been dimmed by concerns over TALF’s lifespan and news of several REITs opting to walk away from CMBS properties.

Analysts said that large volumes of bonds in for the bid and fears that the rally had pushed too far, too fast pulled benchmark A4 spreads 100 basis points wider on the week.

“It is likely that spreads will remain range-bound over the next few weeks,” analysts said. “Ultimately, we think the market will need some form of external stimulus before spreads begin to meaningfully rally again. Given that we are heading into the last two weeks of August, we think it is likely that most of these events will not occur until after Labor Day.”

The new-issue CMBS eligible under TALF garnered no bids Thursday. This marks the second new-issue facility to pass without bids, the New York Fed said. New-issue TALF for CMBS hasn’t been used since its start three months ago.

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