CMBS Leverage Most Since ’07 as Standards Loosen: Credit Markets via Bloomberg

Landlords are piling the most debt onto commercial properties in five years as Wall Street banks bundle the loans into bonds to meet rising demand from investors seeking high yields amid record-low interest rates.

The size of mortgages bundled into bonds will surpass 100 percent of building values for the first time since 2007, before the market shut down amid the worst financial crisis in seven decades, according to Moody’s Investors Service. That measure of leverage on loans tied to everything from skyscrapers to strip malls is poised to climb 4.3 percentage points this quarter, the New York-based ratings company said in a July 11 report.

Read more...CMBS Leverage Most Since ’07 as Standards Loosen: Credit Markets - Bloomberg