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CMBS

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  • Private markets are starting to present good opportunities for credit strategies, particularly collateralized loan obligations, as banks have reigned in lending and shed assets.
  • The tightening spread trend in U.K. residential mortgage-backed securities is set to continue with the Co-Operative Bank’s Silk Road Finance Three—the firm’s first securitization in over a year—due to be priced at the tightest level this year.
  • CMBS market participants are unconvinced new CMBS practice principles will revive primary issuance, but say it is at least step in the right direction.
  • Bonds from legacy commercial mortgage-backed securities transactions are set to rally as investors are looking at a low interest rate environment that is likely to persist for the next several years, according to sister publication Real Estate Finance Intelligence.
  • The Federal Reserve’s decision to keep interest rates at record lows are sharply driving demand for commercial mortgage-backed securities as investors are resigned to a more prolonged period of low returns, according to Amherst Securities Group.
  • The Commercial Real Estate Finance Council Europe is looking to kick-start the region’s stalled new issue market with a far-reaching best practice framework.
  • Officials at Moody’s Investors Service are putting a priority on evaluating how servicers deal with home loans that have advanced to the “seriously delinquent” category; part of the agency’s recently announced updates to residential mortgage servicer quality assessments.
  • Wells Fargo and RBS priced the benchmark, AAA-rated tranche of their $1.3 billion conduit deal at swaps plus 120 basis points – 40 basis points tighter than the wides seen last month.
  • The special servicer in the Deco 6–UK Large Loan 2 CMBS has accelerated the underlying loan to Mapeley, bringing in a new asset manager and property receivers. Even so, at current property valuations, ‘A’ noteholders still face principal losses of 24%.