NY Fed hires PIMCO as collateral monitor for TALF

NEW YORK Tue Aug 4, 2009 4:14pm EDT

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NEW YORK (Reuters) - Bond manager Pacific Investment Management Company (PIMCO) will join data provider Trepp LLC in helping the New York Federal Reserve Bank monitor bonds and give advice on its program to revive securitization markets, the New York Fed said on Tuesday.

PIMCO will perform a broader role than Trepp, the New York Fed said in an update to its frequently asked questions. Trepp, which aggregates information on commercial bonds and real estate, will focus solely on the CMBS markets.

PIMCO's role will encompass the entire Term Asset-Backed Securities Loan Facility (TALF) portfolio, which includes both CMBS and non-mortgage backed Asset-Backed Securities, the Fed said.

The collateral monitors will help the New York Fed by providing valuation, modeling, analytics and reporting that will guide which securities will be accepted as collateral for Fed funding.

But the monitors will not establish policies or make decisions for the New York Fed, including decisions on whether to reject CMBS as collateral for a TALF loan, the New York Fed said.

(Reporting by Kristina Cooke; Editing by Dan Grebler)

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