TALF loans against newly issued ABS and CMBS have been extendedthrough March 31, 2010. Lending against newly issued CMBS has beenextended through June 30, 2010. The Fed explained the discrepancyby noting that CMBS loans take longer to arrange.

The Fed also said it will not consider expanding eligiblecollateral for TALF. Currently the securities eligible forcollateralizing TALF loans include newly issued, triple-A-rated ABSbacked by loans to consumers and businesses, and newly issued andlegacy triple-A-rated CMBS. It's possible that these decisionscould be revisited, the Fed said in a statement, depending on howthe economy performs.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.