David Bodamer over at Clusterstock has some interesting color from a commercial real estate conference where the mood was decidedly grim. Rather than being cheered by the hope that the Fed’s inclusion to commercial mortgage bonds its TALF program will alleviate the stress, participants seem resigned that the worst is yet to come.
Chalk up another stumble for TALF, the Fed’s program to revitalize the securitization market. After expanding the program to include commercial mortgage-backed securities, the Federal Reserve on Tuesday reported that no one showed up to take advantage of the central bank’s attractive financing. Granted this was the inaugural round for loans to investors with eligible CMBS collateral, so it may take some time to take off.