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CMBS

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  • The U.S. Federal Housing Finance Agency has filed suit against UBS for $900 million in losses Fannie Mae and Freddie Mac suffered from mortgage-backed securities the Swiss bank sold to them.
  • Issuance of U.S. collateralized loan obligations will continue at a robust pace through the end of 2011 “with little broader market interference,” according to Fitch Ratings.
  • Matthew Salem is said to have left as head of commercial mortgage-backed securities trading at Goldman Sachs.
  • Rising yields on debt have forced Deutsche Bank and UBS to slash a new $2.2 billion offer of commercial mortgage-backed securities by more than 36% to $1.4 billion as investors step back.
  • Kroll Bond Ratings is getting closer to implementing a ratings model for multi-borrower commercial mortgage-backed securities deals.
  • Prytania Investment Advisors is preparing to launch a new global fund, Metreta, to invest in senior residential mortgage-backed securities, auto loan and credit card asset-backed securities.
  • A new bill in Congress seeks to push Fannie Mae and Freddie Mac regulators to allow the agencies to buy mortgages that include a novel renewable energy tax lien, potentially paving the way for a new class of renewable energy-linked asset-backed securities.
  • JPMorgan Chase has slashed its forecast for sales of commercial mortgage-backed securities in 2011 by up to one-third as volatile prices dent Wall Street profits.
  • If U.S. sovereign debt receives a rating downgrade—a move Standard &Poor’s is threatening even without a default—a third round of quantitative easing is likely in early 2012, according to Willem Buiter, chief economist for Citigroup.