CMBS has big exposure to airline, oil and gas industries

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By Max Adams
17 Mar 2020

The US CMBS market, with its heavy dependence on corporate tenants to keep the cash flows to bond holders coming, is being buffeted by the turmoil stemming from the crisis in recent weeks, with the market exposed across dozens of deals to two particularly ailing sectors — airlines and oil and gas firms.

According to data from Trepp, a commercial real estate and CMBS data provider, more than $11bn of CMBS loans are against properties whose five largest tenants include either oil and gas or airline companies.

Exposure to oil and gas tenants is more widespread, hitting 70 outstanding CMBS loans totalling ...

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