We don’t need your stinking financing
The New York Fed reports that investors only requested financing for $72.2 million of new CMBS loans through its TALF program. Since there’s only been one, the $400 million offering from Developers Diversified, it raises an interesting question: would investors prefer to go it alone without perceived government strings attached rather than juice returns through leverage?
Though I’m still skeptical about what this means for the billions of loans that still need to be refinanced, this is a good sign for the CMBS market and one that issuers are sure to notice. Demand is out there whether there’s nonrecourse loans or not.