CMBS Heats Up, But Is It Back to Stay? via Apartment Finance Today

AROUND THIS TIME LAST YEAR, the CMBS industry appeared to be back in full force, quoting rates that were competitive with Fannie Mae and Freddie Mac for the first time in years. Yet, as soon as it came, it disappeared— rates fell too far, too fast, and investors pushed back. Then, the congressional debt ceiling standoff and Greek debt crisis derailed the industry’s momentum.

But now, well into the second quarter of 2012, CMBS pricing continues to fall. Conduits are quoting rates in the high–4 percent range—not too far from where Fannie and Freddie are pricing. And a growing number of organizations, including Barclays, UBS, Cantor Fitzgerald, JPMorgan Chase, LoanCore, and Guggenheim Partners, are setting large CMBS budgets for the year.

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