The Federal Reserve is giving its Term Asset-Backed Securities Loan Facility for existing commercial mortgage-backed securities a three-month extension. For newly issued CMBS, the extension is six months. "It seems to me that the Fed realizes that this program has had a positive impact on the markets and also that the markets are not yet healthy enough to walk on their own at this point," said Scott Buchta, a strategist at Guggenheim Capital Markets in Chicago. Meanwhile, a Federal Reserve bank survey suggests that the credit crisis is starting to ease despite lenders' continued tightening of loan standards to consumers and businesses.

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