With almost six weeks to go in 2013, sales of commercial-mortgage bonds are already surpassing Wall Street’s forecasts for the year, defying concern that rising interest rates would stymie new deals.
Issuance of the securities is poised to exceed $80 billion, eclipsing the $60 billion that Barclays Plc predicted in January, according to analysts at the bank. Lenders have arranged $65.5 billion of offerings this year and another $14.5 billion is in the works, including a $3.5 billion deal tied to Hilton Worldwide Inc. that will be the largest such offering since before the credit crisis, Bank of America Corp. data show.
New York City landlords to South Carolina hotel operators are rushing to refinance mortgages before the Federal Reserve starts cutting stimulus that pushed interest-rate benchmarks to record lows.
Read more...Wall Street Keeps Swagger in CMBS as Sales Surge: Credit Markets - Businessweek