Posted on 23 August 2009
Tags: apartments, billion, bonds, central bank, commercial-mortgage, commercial-mortgage-backed securities, Deutsche Asset Management, Federal Reserve, financing program, hotel, investment banks, investors, Loans, Merrill Lynch & Co. index data, New York, New York Fed, shopping malls, skyscrapers, Term Asset-Backed Securities Loan Facility
The Federal Reserve has been asked by the investors, for loans making an amount of $2.3 billion, against commercial-mortgage-backed securities created before this year, an expansion from $668.9 million in its financing program.
According to the New York Fed, the central bank got no requests for newly issued bonds backed by loans on skyscrapers, shopping malls, apartments or hotels. That part of the Term Asset-Backed Securities Loan Facility, or TALF, hasn’t been used since its start three months ago.
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Posted on 16 August 2009
Tags: Banks, commercial real estate, commercial real estate loans, Economic Recession, hotels, housing market, landlords, Loans, Los Angeles, Mortgage Backed Securities, office, property owners, Real Estate, recovery, revenue, shopping malls, U.S. banking sector, unemployment rate, University of California
Although the housing market has started to show signs of recovery, the future of commercial real estate is looking increasingly grim. And this could be a sign of trouble for the fragile U.S. banking sector.
The economic recession and the rising unemployment rate has forced businesses to cut back on rental space, which has resulted in decline in revenue for many landlords. Moreover, it has become increasingly harder to refinance due to tighter underwriting standards and falling real estate values.
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