Thursday, February 7, 2013

CMBS Seeing Resurgence in U.S. via World Property Channel

After several troubled years, the US commercial mortgage-backed securities (CMBS) market has begun to take off. So far this year, issuance is approaching $13 billion, according to a February 6th Bloomberg report, and in January, the $8.8 billion worth of new CMBS issued broke records, according to RBS. All this is happening at a time when property owners are having better luck resolving troubled loans.

"I think there was a rally in the second half of 2012, in terms of CMBS prices and spreads," says Joe McBride, research analyst at Trepp, LLC. "In June, spreads dropped to 2007 levels and by the end of 2012, it had become more profitable for a lot of borrowers to borrow in the CMBS market. For a few months, lots of lenders were sitting on the sidelines making sure the rally was for real. But once we didn't go over the fiscal cliff fully, lots of lenders and securitizers, jumped in and took advantage of CMBS spreads," he says.

Read more...CMBS Seeing Resurgence in U.S. - WORLD PROPERTY CHANNEL Global News Center

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