News
CMBS Tumble: Does This Signal A Broader Downturn For The Industry?
February 17, 2016
CMBS have dropped sharply since the start of the year, with Triple-B bonds tumbling 18%—a development that could signal a broader downturn in the commercial real estate market.
The high prices CMBS investors are demanding to take on risk means property owners and developers will face higher rates on loans. The change happens as the market braces for the CMBS maturity wall, in which nearly $200B in CMBS loans will need refinancing, the Wall Street Journal reports.
