October 16, via Structured Finance News:
Researchers at Barclays Capital (BarCap) expect the October facility date for a government loan program to receive an uptick of requests over the last subscription date.
The October 21 Term Asset-Backed Securities Loan Facility (TALF) for commercial mortgage-backed securities (CMBS) will likely see an increase in subscription volume over last month, BarCap said in a research report Friday.
Bid list activity of $4.8bn since the last CMBS-eligible TALF subscription date points to a likely increase in subscription volume over last month. Of this activity, $2.6bn – or 55% - is TALF-eligible, BarCap researchers said.
“This is the highest percentage of TALF-able bid list activity yet,” researchers wrote. “We expect an uptick in loan requests versus last month’s $1.4bn; our preliminary estimate is for around $2bn in TALF loans requests in October.”
And on Wednesday, the Federal Reserve Bank of New York released the following:
Which means the BarCap analysts were right on the money — investors requested $2.1bn worth of legacy (pre-2009) CMBS Talf loans for the October subscription — the fourth round of the Federal Reserve’s programme to help boost lending in the commercial real estate market.
Which is just as well really, since the Fed’s Beige Book, also released on Wednesday, contained this tidbit:
The weakest sector was commercial real estate, with conditions described as either weak or deteriorating across all Districts.
Related links:
Banks not worried enough about commercial real estate, Fed says – FT Alphaville
The Talf that keeps on taking (CMBS) – FT Alphaville