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CMBS

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  • Downgrades on peripheral European countries’ credit ratings are making it more expensive for banks to hold peripheral asset-backed securities paper, according to a senior London-based ABS trader, but a lack of liquidity is making it tough to offload.
  • The U.S. Department of Justice is investigating Standard & Poor’s and Moody’s Investors Service over its ratings of mortgage-backed securities.
  • Fitch said on Friday that pub company and care homes securitisations will no longer be able to pick up triple-A ratings under its new methodology.
  • Cantor Commercial Real Estate has continued lending despite post-downgrade volatility, according to Senior Managing Director Michael May, who said the firm is quoting new loans in the 5-6% area.
  • Invesco Mortgage Capital has announced a public offering of 20 million shares of common stock priced at $18.37 a share to raise roughly $367.4 million for the purpose of acquiring additional residential and commercial mortgage-backed securities.
  • Investment in residential mortgage-backed securities in Chicago could be hindered by a local ordinance that includes lenders and financial firms in its definition of “property owners,” according to Moody’s Investors Service.
  • U.K. lender Nationwide Building Society is modifying its residential mortgage-backed securities master trust, Silverstone, which market officials in London say will pave the way for a new issuance from the program shortly.
  • Senior bondholders in Merrill Lynch’s £447.1 million ($737 million) Taurus U.K. 2006-2 commercial mortgage securitization are set to benefit from last week’s sale of St. Katharine’s Dock, one of the underlying properties in the U.K. CMBS deal.
  • The Department of Justice is investigating Standard & Poor’s over its ratings of mortgage-backed securities in the years before the start of the financial crisis.