BarCap Expects $2bn of CMBS TALF Requests
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." The Federal Reserve initiated the TALF program to stimulate lending by allowing private investors to purchase securities with a matching government investment. The reach of the program into legacy CMBS aimed to aid price discovery and provide liquidity for the commercial mortgage market, which faces a credit crisis of its own. Write to Diana Golobay.