Tortuous TALF 2.0

May 15, 2020

Commercial real estate CLOs, SASBs and, most strikingly, legacy CMBS deals are not eligible for the TALF 2 emergency lending facility. Only recently issued fixed-rate senior conduit CMBS rated triple-A by two rating agencies and not on downgrade watch are eligible. Stuart Goldstein comments.

This is different to TALF 1.0. “The intention of the other parts of TALF is to see new issuance. Clearly this is not the case for CMBS. For whatever reason, making sure there is additional liquidity in the commercial real estate lending market wasn't a priority," says Stuart Goldstein, a partner and co-chair of the CMBS group at Cadwalader.

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