In 2006- early 2007, economic roundtable after roundtable discussed the “liquidity problem.” However, at that time, the discussions were not about the lack of liquidity, but its excess. Investors were complaining that they didn’t know where to put their money. As a result, not only was there a surge in RMBS, but there was a [...]

Filed under: Research Reports by Vincent Truglia

In recent weeks, the debate over bank nationalization has hit a fever pitch. Fed Chairman Bernanke’s recent Congressional testimony seemed to allay some of the fears regarding “nationalization” of the major banks. However, the real question is who will really be running the banks? If government capital injections are used simply as a tool to [...]

Filed under: Research Reports by Vincent Truglia

On February 10, the fed announced that it will include CMBS under its expanded Term Asset-Backed Securities Loan Facility (TALF). While this has been widely embraced as a positive step for commercial real estate market participants, we remain somewhat skeptical around the long-term benefits of this program. Below, we provide an introduction to the TALF, [...]

Filed under: NewOak Blog by Commercial Real Estate Loans & Securities

We don’t need a bad bank or aggregator bank - we need a disaggregator bank. To reduce the government policy uncertainty and get the markets moving and credit flowing again, we need the troubled assets in the hands of the parties that can effectively manage them. At the same time the impact of losses to [...]

Filed under: NewOak Blog by Andrew Akers

Part of the current debate in DC and on Wall Street around the next phase of the TARP and the prospect for a Bad Bank involves the question of balancing two approaches to risk off-take from banks and others holding the subject risk. On the one hand, there is the “purchase” approach in which [...]

Filed under: NewOak Blog by Andrew Akers