CMBS loans issued in Q1 rose in quality thanks to commercial property prices that are beginning to level off, according to a new report from Moody’s.
Conduit loan origination slowed during the period, largely due to volatile AAA bond spreads, Multi-Housing News reports. And in this environment of volatility, life insurance companies had a competitive edge relative to CMBS for loans on top-tier properties.
“CMBS accounted for about 20% of overall commercial lending activity last year, about half its share at the pre-crisis peak,” says Moody’s director of commercial real estate research Tad Philipp. The report also notes that a new risk retention regulation for CMBS will come into effect late this year, but its final form is still unclear. [MHN]
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