Fed said most eligible CMBS OK for TALF - Citi
NEW YORK, July 10 (Reuters) - Most commercial mortgage-backed securities eligible under published guidelines for the Term Asset-Backed Securities Loan Facility will also meet other Federal Reserve criteria, the Fed told investors on Friday, according one investor and a dealer.
Uncertainty over which CMBS could still be rejected from the TALF program next week has created confusion and capped gains in the $700 billion market, which the Fed wants to help unlock with the lending program.
The assurance by the Fed "will help, but we expect the market will be cautious," Citigroup analysts said in a research note obtained by Reuters.
CMBS derivative index prices rose after the Fed conference call, according to one investor. (Reporting by Al Yoon, Editing by Dan Grebler)
© Thomson Reuters 2009 All rights reserved
Wall St meets "The Sopranos"
Details of an alleged insider trading ring read like the script of a mobster drama, full of coded nicknames, disposable cell phones and paranoia about informants. But in the end, all of the precautions were for naught. Full Article
