tag:blogger.com,1999:blog-4863014635257598503.post6087531561617630036..comments2024-02-27T22:18:53.706-05:00Comments on Zero Hedge: Atlanta FED's Lockhart Says 2009 Year of CMBS CrashTyler Durdenhttp://www.blogger.com/profile/00165439451205639523noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4863014635257598503.post-78268736461906770542009-03-01T08:30:00.000-05:002009-03-01T08:30:00.000-05:00EOC, the $400 billion in commercial mortgages matu...EOC, the $400 billion in commercial mortgages maturing, are mostly not CMBS. In fact, just $26 billion CMBS mature in 2009, and most are 10-year old loans on stabilized properties. <BR/><BR/>Further, extending the TALF to secondary issues, would have no effect on these maturing CMBS loans - you want to create a primary marketplace they can refinance into.<BR/><BR/>The concerns with the $400 billion in maturities lie square at the base of your local and regional banks, rather than Wall Street. Most of that $400 billion consists of short-term, floating-rate loans on transitional and under-development projects.Dark Spacehttps://www.blogger.com/profile/13613854488437471493noreply@blogger.comtag:blogger.com,1999:blog-4863014635257598503.post-30264108121855987092009-02-24T07:16:00.001-05:002009-02-24T07:16:00.001-05:00Ironic, seeing as the Fed is thinking (very hard) ...Ironic, seeing as the Fed is thinking (very hard) about expanding the TALF to include already-issued CMBS. If they do, that $400bn refinancing time-bomb would probably go off right in the Fed's face. I'm guessing Lockhart will vote against that TALF expansion (though I suspect he'll lose).<br />s<br />It's been funny to watch the Fed's moves on the CMBS issue in the past couple weeks. They called a couple big banks and asked what they thought about expanding the TALF to include existing CMBS too. The rumor that the Fed was open to the idea of accepting existing CMBS spread like wildfire (even by Wall Street standards), and got everybody all excited. Now there's a <i>huge</i> lobbying effort underway to get the Fed to accept existing CMBS as collateral in the TALF. Not surprisingly, the Street has managed to convince the Fed that this would have Totally Awesome Effects on the CRE market, banks' balance sheets, the US economy, AIDS in Africa, etc. Now the Fed is leaning toward actually doing it.<br />s<br />This is the story of the financial crisis. It's amazing how much the Street is carpet-bombing the Fed's balance sheet. Seriously, how much more of this can the Fed take?Anonymousnoreply@blogger.com