Fed Chooses Collateral Monitor For Commercial Mortgage Bonds
June 16 2009 - 11:09AM
Dow Jones News
The Federal Reserve has chosen a collateral monitor for new and
existing commercial mortgage bonds in a program through which it
offers investors cheap loans to buy such bonds.
Trepp LLC will "assist the New York Fed by providing valuation,
modeling, analytics and reporting" on these commercial
mortgage-backed securities, the central bank said Tuesday, the loan
application deadline for newly created commercial mortgage bond
portion of its Term Asset-Backed Securities Loan facility, or
TALF.
Trepp "will not establish policies or make decisions for the New
York Fed, including decisions whether to reject a CMBS as
collateral for a TALF loan."
Further, the Fed may use the services of other collateral
monitors in connection with TALF, the bank said.
The bank is likely to offer loans for existing CMBS beginning in
July.
-By Anusha Shrivastava, Dow Jones Newswires; 201-938-2371;
anusha.shrivastava@dowjones.com