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CMBS

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  • Fitch Ratings is shining the spotlight on what analysts there say is a troubling new trend in the commercial mortgage-backed securities market. “Originators’ enthusiasm to maintain volumes are putting pressure on securitizations to come to market quickly, raising the risk of errors in loan oversight,” said Fitch managing director Huxley Somerville in a report Monday.
  • The rapid pace of mortgage servicing rights transfers could slow next year as non-bank servicers digest their recent bulk purchases of banks’ riskiest loans, but rising interest rates are likely to precipitate an uptick in MSR sales for prime and agency-backed loans.
  • The improving fundamental performance of European commercial real estate is expected to continue and move beyond prime properties and into second tier assets next year, according to Moody’s. The rating agency still expects, however, that the majority of outstanding CMBS loans maturing next year will not repay.
  • Firms hoping to issue residential mortgage-backed securitizations backed by non-qualified mortgages may be able to do so, but it’s going to cost them, according to analysts at Moody’s Investors Service.
  • Non-agency residential mortgage-backed securities will still offer investors appealing return next year, but its transitional nature will make it more oriented for “alpha” investors, according to investment bank analysts.
  • Goldman Sachs is marketing the first commercial mortgage-backed securities deal backed by Italian assets since 2006 and what two market participants said was also the first CMBS since the crisis to be backed by new loans, as opposed to refinancing legacy assets.
  • Goldman Sachs found enough investor demand to price all three tranches of its Italian CMBS, Gallerie 2013 Srl, at the tight end of — or inside — guidance. The deal has added to market expectations of even greater CMBS supply next year.
  • Goldman Sachs is marketing the first CMBS backed by Italian assets since 2006 and what two market participants said was the first CMBS since the crisis to be backed by new loans, as opposed to refinancing legacy assets. Meanwhile, bank CMBS conduits may be set to reappear in Europe.
  • Goldman Sachs is marketing the first CMBS backed by Italian assets since 2006 and what two market participants said was the first CMBS since the crisis to be backed by new loans, as opposed to refinancing legacy assets. Meanwhile, bank CMBS conduits may be set to reappear in Europe.