CMBS Sales Face $15 Billion Drop on Interest-Rate Jump, S&P Says via Bloomberg

Rising interest rates may trim issuance of commercial-mortgage bonds by $15 billion this year, according to Standard & Poor’s.

An increase of 55 basis points on 10-year Treasury yields coupled with a rise of 30 basis points on relative yields on top-ranked securities linked to property loans will put a damper on the resurgent market, S&P analysts led by Howard Esaki said yesterday in a note to clients. The analysts estimate 2013 sales of $65 billion after adjusting for the rising rates.

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