The recent reversal of some positive technical conditions in the CMBS market supports the need for clarification of the Public-Private Investment Program (PPIP) supporting the sector as well the extension of the TALF program, according to a NewOak Capital report.
"While I think that the extension of TALF for CMBS into 2010 is a positive, we'll need some more clarity around PPIP in order for the market to get back on track," said Craig Lieberman, managing director and co-head of commercial real estate at NewOak Capital.
He said that contributing to negative technicals seen recently in the market was "news of big CMBS borrowers like Maguire [Properties] and [Joseph] Moinian handing over the keys on several properties," as well as an earlier announced delay of the PPIP program, followed by a large collateralized debt obligation liquidation.
