Sector developments and company hires

BlackRock hired
The New York Fed has retained BlackRock Financial Markets Advisory as a third-party vendor to operationalise its purchases of agency CMBS and transact with primary dealers on behalf of the SOMA. BlackRock was selected on a short-term basis to serve as an investment manager after considering its expertise in trading and analysing agency CMBS in the secondary market, as well as its robust operational and technological capabilities.

TALF 2.0 recommendations
The CRE Finance Council (CREFC) and 12 other real estate trade organisations have submitted a letter urging the US Fed and Treasury to expand the TALF 2.0 to include agency and private-label CMBS (SCI 24 March) and GSE credit risk transfer securities. Among the recommendations outlined in the letter, the signatories advise: a maximum TALF loan maturity of five years or more for CMBS (which have longer durations than the other assets classes currently accepted by the TALF 2.0); a reduction in haircuts to between 5% and 10%; and the extension of eligibility criteria to super-senior triple-A CMBS rated by one or more of the NRSROs, as these bonds make up around 70% of CMBS issuance. The other signatories are American Council of Life Insurers, American Hotel & Lodging Association, American Seniors Housing Association, Asian American Hotel Owners Association, International Council of Shopping Centers, Mortgage Bankers Association, NAIOP, Nareit, National Multifamily Housing Council, National Apartment Association, The Real Estate Roundtable and Structured Finance Association.