New CMBS Issues Will Become Eligible for Government Aid at Mid-Month, But Some Fear S&P Action Could Blunt TALF’s Ability to Restore Liquidity

By Randyl Drummer in CoStar
June 3, 2009

With commercial mortgage securities poised to become eligible for government help later this month, investor interest in the Federal Reserve’s fledging loan program to restore liquidity to frozen capital markets reached a new high in the latest round of subscription requests announced this week.

[Blogger says focus on this:] One way back into the securitization market for those firms is to originate and securitize whole loans eligible for TALF, whose investors would purchase the AAA stack while the insurance firm would retain the B-piece. Prudential is reportedly planning a $1 billion equity fund dedicated to originating TALF-eligible commercial mortgages.

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