CMBS market in ‘hiatus’ until Q3

Commercial mortgage-backed securities (CMBS) new issue will likely stay in hiatus for the next five to six months due to COVID-19's shuttering the commercial real-estate market (CRE) since March.

The road back to new issue is rife will challenging steps. The major obstacles facing the industry are three-fold, according to industry experts:

  1. Cleaning up the $12-15 billion in warehouse loans to borrowers that planned on issuing CMBS first quarter. The U.S. big banks are 80% exposed to the warehouse facilities, bankers said.
  2. Investors need to . . .

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David Graubard

David Graubard is a financial writer with deep expertise in bonds. He brings readers actionable content from his experience as a bond trader and a collateralized loan obligation analyst.

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