Publications

- March 2010: Volume 22, Number 3

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Filling the Equity Gap: Successful Policy Efforts in 2009 Pave the Way for Continued Engagement on Top Policy Priorities

by Clifton Rodgers

For the first time since the dislocation of commercial real estate credit markets in 2007, there are tentative signs of life in the ailing commercial mortgage–backed securities (CMBS) market — a key source of commercial real estate credit for more than a decade.

A $400 million CMBS deal completed in November 2009 with modest financing support from the Federal Reserve’s Term Asset-Backed Securities Loan Facility (TALF) subsequently paved the way for more than $3 billion in private (non-TALF-supported) CMBS issuance. Clearly, the TALF has helped to narrow credit spreads, re-establish price discovery and inject confidence into the market.

It is said that big things have small beginnings. Yet, as welcome as these signs are, the trillion-dollar refinancing crisis in commercial real estate is far from over.

In 2008, commercial real estate was valued at approximately $6.7 trillion, supported by $3.5 trillion in debt financing. More than $700 b

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