To prevent a re-run of the 2008/09 collapse in the US financial system, the US Fed again stepped into the agency-MBS market, after the COVID-19 shock emerged in Q1, buying almost $600 billion of agency-Mortgage Backed Securities in Q2 2020 alone.
However, this support has not extended across the economy. Other than the Term Asset-Backed Securities Loan Facility program (TALF 2.0), covering legacy AAA CMBS, Government and Fed rescue programs have been very limited in commercial real estate/CMBS. This is to avoid the criticism the Fed has caused moral hazard in financial markets by buying assets indiscriminately.
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