The Federal Reserve Bank of New York announced the results of the latest TALF operations in support of new and legacy CMBS. The New York Fed received loan requests for legacy CMBS in the amount of $1.4 billion, down from $2.3 billion in requests in August that resulted in $2.1 billion in settlements.
No requests were received for support of new CMBS during the Sept. 17 subscription window. The rates for the current facilities were 2.9455 percent for fixed three-year loans and 3.7958 for fixed five-year loans.
“Consistent with our assessments of the TALF program to date, today's results suggest that the expansion of TALF to CMBS will have a limited impact on liquidity and the availability of credit in the near-term,” said Sam Chandan, president and chief economist at Real Estate Econometrics. “While new CMBS deals are anticipated as soon as October, we do not expect that the volume of securitization activity in the fourth quarter will itself result in a material change in broader commercial real estate market conditions.”