The
credit terms offered to customers for early payment need to be
sufficiently lucrative for them to want to pay early, but not so lucrative that the seller is effectively paying an inordinately
high interest
rate for the use of the money that it is receiving early.
The trick now is that to make the TALF program work for new CMBS loans, investors have to feel they are getting a
sufficiently high return on CMBS bonds — with the starting point of at least 10 percent for five - year bonds in today's market, according to Michael Magerman, senior vice president for Realpoint LLC, a Horsham, Pa. - based
credit rating agency.