CMBS Update

CMBS: Back in Business?

Source: costar.com

"Investors Showing an Appetite for Bonds Backed Even by the Weakest Real Estate Sector and No Government Support

The commercial mortgage bond securitization window that has been closed for nearly two years during this recession has reopened for business in the last few weeks and investors have lined up encouragingly to take advantage of a new round of CMBS offerings.

Several investment banks have announced that they are firing up their conduit lending programs and will begin to originate and warehouse loans for multi-borrower securitizations, said Chris Moyer, an associate with Cushman & Wakefield Sonnenblick-Goldman in New York."

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Comments

This is an interesting article because for a long time the commercial mortgage bond market was non-existent. The most poignant line in the article that I found was "...demonstrated strong investor demand and set a benchmark for potential issuers considering similar transactions." The addition of this market awakening, albeit slowly is good news.

We've been trying to refinance multiple multifamily properties in Long Beach since late 2007 to no avail. It is encouraging to see that someone somewhere is having some luck. Let's all hope it continues to thaw for the littler buildings under 100 units.