Commercial-real-estate lenders and borrowers are scrambling to capitalize on one of the strongest rallies in the debt markets since the financial crisis.
Buyers of commercial-mortgage-backed securities are accepting yields on new issues as narrow as 0.85 percentage point above an interest-rate benchmark, the lowest since 2007. They have accelerated their demand in the past few weeks because of the Federal Reserve's latest round of quantitative easing, which has ignited a firestorm of demand for riskier assets.
This higher demand for commercial-mortgage securities is enabling lenders to make more debt available at better terms to property owners. To be sure, the financing-parched commercial-property industry still faces a huge mismatch between supply and demand.
Read more...CMBS Rally Is Welcome News in Property Market - WSJ.com
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