Government intervention appears to have a positive affect in reviving the moribund CMBS market which died following the sub-prime crisis in 2007. The federal reserve has been buying CMBS's as well as providing fresh capital to banks through the TALF program which allows banks to put up qualified CMBS and CDO's as security for new loans at very loan rates. The banks can then use these funds to issue new securitized loans to fund purchase and refinance of commercial loans.
Recent private CMBS offerings have had positive receptions in the market including a recent offering by JPMorgan in which Inland Western Retail Real Estate Trust Inc., an Oak Brook, Ill.-based non-listed REIT, closed a $625 million loan.
Wells Fargo, Goldman Sachs, Bank of America and JP Morgan, all have already announced their involvement in new CMBS deals.
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