Gary Roth Quoted by Reuters
May 7, 2009
Gary Roth was quoted by Reuters in a story discussing Federal Reserve plans to extend five-year loans against commercial mortgage-backed securities to spur the market for business properties. Roth said, “It’s not clear to me how five-year TALF loans will fix the most pressing problem in CMBS, which is declining market value of commercial real estate. In its current incarnation, TALF only funds AAA securities. As the article [Reuters asked him to originally comment on] points out, to get to AAA levels at the senior tranche, the mez and sub pieces will have to be very large and it is not clear to me how boxing the risk on the senior piece will foster investor interest in the lower rated tranches."