The Federal Reserve will provide loans to finance the purchase by investors of bubble-era commercial mortgage-backed securities from July onwards in a move officials hope will stem a financing crisis in the commercial property industry. The initiative is part of a wider effort to kickstart trading in illiquid toxic assets – now rebranded “legacy assets”. The Fed is also evaluating the terms on which it could extend financing for investors to buy bubble-era subprime and jumbo mortgage-backed securities.

This entry was posted by Gwen Robinson on Thursday, May 21st, 2009 at 5:00 and is filed under Capital markets. Tagged with federal reserve. Edit this entry.