Time Coming For Commercial Mortgage Market To Stand On Its Own

NEW YORK -(Dow Jones)- The Federal Reserve on Friday will conduct the last round of purchases of existing commercial mortgages, marking the end of a government program designed to buoy markets and boost investor confidence in securities that have been battered since the financial crisis in 2008.

The end of this part of the Term Asset-Backed Securities Loan Facility, or TALF, leaves a corner of the commercial mortgage market on its own, and investors won’t see new deals until later in the year, when regulators are expected to provide more clarity on securitization.

While the Fed’s role has been small relative to other programs–the central bank has granted only $11 billion in loan requests since last June–the impact has been much larger in a sector still in the throes of a painful correction.

“TALF provided psychological support for the market,” said Darrell Wheeler, head of commercial mortgages at Amherst Securities. “It served its purpose at the time it was needed.”

Continue Full Article Here

By Prabha Natarajan Dow Jones Newswires
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s