FT Alphaville presents the following CMBS-saga timeline:
- May 19 – Fed announces that it will expand the Talf to include certain legacy CMBS.
- May 28 – S&P warns it will likely downgrade tens of billions of AAA-rated CMBS after tweaking its ratings methodology, including CMBS owned by Goldman Sachs, Credit Suisse, JP Morgan and Morgan Stanley, among others.
- May/June – Investors slowly cotton on to the fact that Talf-eligible CMBS needs at least two triple-A ratings.
- June 16 – The initial subscription for Talf loans for new CMBS fails. No one applies.
- Early July – S&P is reportedly “crushed with client calls” about the proposed new ratings.
- July 16 – Investors ask for a paltry $668.9m at the first Talf legacy CMBS offering. (By way of contrast, an estimated $300bn to $500bn of CMBS is scheduled to mature this year).
- July 21 – S&P reverses its decision to tweak its CMBS rating methodology.
We’re not suggesting these events are related, but …
Related links:
S&P’s CMBS flip flop – FT Alphaville
CMBS deja vu – FT Alphaville
CMBSnafu – FT Alphaville