1. Lighted Match on Fire

We thought we’d pass along some interesting news articles about the Commercial Mortgage-Backed Securities (CMBS) industry:

Competition for Commercial Mortgage-Backed Securities (CMBS) Is Heating Up.  Older loans are maturing and new equity is coming into the market.  From our perspective these articles provide important insights:

  • Lower underwriting quality and less stringent risk evaluation criteria hold important, downstream implications when these financing instruments mature.
  • Lenders are under significant business pressure to issue these securities as industry competitors are approving them at a high rate.
  • Borrowers are going to push the limits in how much they can borrow, and how they’ll frame or present their CMBS applications to obtain approval.

What’s Your Perspective on the Aforementioned Articles Forecasting These Expected, Near-Term Trends? Please let us know your thoughts in the comments.

 

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Photo Credit: osbock