No CMBS TALF Takers Yet, But Collateral Monitor Named

Posted by Orb Staff on June 17, 2009 No Comments
Categories : Commercial Mortgage

rm Asset-Backed Securities Loan Facility's (TALF) dive into commercial mortgage-backed securities (CMBS) is getting off to a slow start, the [link=http://www.newyorkfed.org/markets/cmbs_operations.html ][u]New York Fed[/u][/link] reports. As was widely anticipated by market analysts, no loan requests were submitted to the Fed before the June 16 deadline – the first time funds were available for commercial mortgage bonds. ‘Nobody was expecting any deals to be ready in June," Darrell Wheeler, a Citigroup strategist, told [link=http://www.reuters.com/article/bondsNews/idUSN1630835820090616][u]Reuters[/u][/link] Tuesday. According to most reports, the lack of requests had more to do with too little time to prepare deals, rather than limited interest in the TALF program. Activity is projected to pick up toward the end of the summer. While CMBS investors have not yet acted on TALF, the New York Fed did, selecting Trepp LLC as a collateral monitor for CMBS as part of TALF. Trepp, headquartered in New York City, will provide valuation, modeling, analytics, reporting and advisory services to the New York Fed, but will not direct policies or make decisions for the Fed, including decisions whether to reject a CMBS as collateral for a TALF loan or exclude loans from mortgage pools. Trepp has subcontracted analytics and forecasting duties to its Boston-based sister company, Property and Portfolio Research (PPR). Trepp and PPR are both wholly owned by DMG Information Inc., the business information division of Daily Mail and General Trust plc. Trepp was awarded the contract after a competitive bidding process. SOURCES: New York Fed

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