Expanding TALF To Include Newly Issued CMBS

Law360, New York (May 5, 2009, 12:00 AM EDT) -- On May 1, the Federal Reserve Bank of New York (FRBNY) announced that, starting in June, commercial mortgage-backed securities (CMBS) will be eligible collateral under the FRBNY’s Term Asset-Backed Securities Loan Facility (TALF).

Since March 17, the FRNBY, in conjunction with the U.S. Department of the Treasury (UST), has been providing nonrecourse, low-interest TALF loans to eligible borrowers in order to finance purchases by those borrowers of newly issued asset-backed securities (ABS) on a highly leveraged basis.

Prior to this development, those ABS only could be...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.