Following up on our post CMBS, the latest evidence of pain, the results are out for the first TALF CMBS operation. The NY FED agreed to lend $669 million against legacy CMBS paper as collateral. This may seem like a large number, but it will have no impact on the overall market.
Note that the first non-CMBS TALF operation took in almost $5 billion for auto and credit card collateral, and that was considered a failure of the program.
TALF is the last hope to get some stability into the commercial real estate mortgage market, but at this slow pace the program will be ineffective.