All articles tagged with #cmbs
Investors in top-rated commercial mortgage-backed securities (CMBS) have experienced their first loss since the financial crisis, with buyers of a $308 million note backed by a Manhattan building receiving less than 75% of their investment. Lower-ranking creditors were completely wiped out.
The recent failures of regional banks have raised fears of contagion and curtailed their lending activity, leaving a huge swath of commercial real estate (CRE) investors struggling to find money. Small and midsized banks are the financial backbone of CRE investing, but they are facing a reduction in their real estate exposure due to the leakage of deposits. With more lenders out of the market, less liquidity means CRE values will continue to be pushed downward. Some regional banks may turn to the securitized market to free up their balance sheets of CRE debt.