Term Asset-Backed Securities Loan Facility: CMBS

The Federal Reserve created the Term Asset-Backed Securities Loan Facility (TALF), to help market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities (ABS) collateralized by auto loans, student loans, credit card loans, equipment loans, floorplan loans, insurance premium finance loans, loans guaranteed by the Small Business Administration, residential mortgage servicing advances, or commercial mortgage loans. Eligible borrowers must use a TALF Agent, which will act as agent for the borrower, to access the TALF and must deliver eligible collateral to the New York Fed's custodian bank.

The following operations announcement pertains to newly issued commercial mortgage-backed securities:

Operation Announcement
Subscription Date: June 18, 2010
Closing Date: June 28, 2010
3-Year Maturity Date: June 28, 2013
5-Year Maturity Date: June 29, 2015
Facility Open: June 18, 2010 9:00 a.m. ET
Facility Close: June 18, 2010 3:00 p.m. ET
Administrative Fee: 20.00 basis points
Eligible Collateral: CMBS1
Loan Term: 3 or 5 years

Rates will be set at 12:00 p.m. ET on June 17, 2010

Haircuts for New Issue CMBS:

CMBS Average Life (years)



Commercial Mortgage


For newly issued CMBS with average lives beyond five years, collateral haircuts will increase by one percentage point for each additional year (or portion thereof) of average life beyond five years. No CMBS may have an average life beyond ten years.



Fixed 3 year loan

Fixed 5 year loan

Commercial Mortgage

3-year LIBOR swap rate + 100 bps

5-year LIBOR swap rate + 100 bps

1As defined in the terms & conditions
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