Archive - Mar 21, 2009 - Story

In response for requests for information on where the capital markets objectively evaluate commercial mortgage backed securities, and also to demonstrate the recent knee jerk reaction of how CMBX spreads ripped wider once it became clear older vintage, sub-AAA would not be eligible for TALF 1.0 participation, I am presenting the recent trading levels of CMBX 1 through CMBX 5, segregated by tranching (rule of thumb: the higher the chart line, the lower the underlying value, the more MTM pain for sellers of the CMBX tranche i.e. banks).

As Zero Hedge wrote previously, the TALF in its current formulation is merely a lot of hot air as it provides an incentive to buy assets that nobody really cares about (AAA-backed, newly issued "securitized" equivalents).

As Zero Hedge wrote previously, the TALF in its current formulation is merely a lot of hot air as it provides an incentive to buy assets that nobody really cares about (AAA-backed, newly issued "securitized" equivalents).