Investors show no appetite for Fed program to bolster commercial real-estate loans

Commercial real-estate loans draw no interest

WASHINGTON — Investors showed no appetite for a government plan intended to boost the availability of commercial real-estate loans.

The Federal Reserve Bank of New York says it received no investor requests for loans by Tuesday’s deadline. Investors would use the money to buy newly issued securities backed by commercial real-estate loans.

The Fed has been counting on this new option — part of the broader Term-Asset-Backed Securities Loan Program, or TALF — to increase the availability of commercial real-estate loans, help prevent defaults and facilitate the sale of distressed properties.

The TALF is intended to spark consumer and small business lending. Investors have requested billions of dollars worth of loans under that part of the program.