Demand for Commercial-Mortgage Bonds Defies Expectations via WSJ

The busiest December for commercial mortgage-backed securities issuance in five years is being met with strong interest from investors.

Benchmark classes from most CMBS are pricing at healthy levels after softening last month when investors anticipated a rash of new supply would overwhelm typically thin year-end buying. In all, at least $4.6 billion will price or has already sold, the most in any year-end push since 2007, according to Deutsche Bank DBK.XE -1.06%.

CMBS “is flying off the shelf,” said Edward Shugrue, chief executive at Talmage, an investor and bond servicer.

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