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CMBS Activity Remains Strong Amid New Risk-Retention Rules


The new CMBS risk-retention rules came into effect in January and they do not seem to have hurt the sector’s performance.

There was $61.8B on the New York CMBS market alone last month, just 1% under December levels, The Real Deal reports. Three deals accounted for $810M of the newly issued CMBS loans that entered the market in January, all backed by New York real estate.

The new rules require lenders to retain a 5% stake of each CMBS deal on the books for five years, and some investors feared they would hurt the industry. While it looks like those fears were overblown, perhaps the real threat to CMBS is Deutsche Bank’s recent call to bet against the sector.