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  • Brevan Howard Asset Management is looking to see up to 60% return within two years from a new fund that invests in commercial mortgage-backed securities.
  • Loss severity on U.S. commercial mortgage-backed securities is likely to rise from current levels as special servicers press to liquidate more loans this year and next in poor performing property type and geographies.
  • A failed modification attempt on a single, $470 million loan on a Los Angeles office tower is responsible for a 12-basis-point increase in the delinquency of loans in U.S. commercial mortgage-backed securities to 8.65% in May, according to Fitch Ratings.
  • Investors have been more cautious about putting money into long-term commercial mortgage-backed securities because of recent rate declines, as Treasury yields have fallen up to 91 basis points since March.
  • BNY Mellon Capital Markets is expanding its mortgage securities trading desk, picking up a handful of traders from Ally Securities, a unit of Ally Financial.
  • Secondary market trading volumes in European securitization have remained light since the start of June, but the broader market view suggests spreads in the core secondary markets are remaining resilient.
  • Balloon risk remains the key risk for the three largest German multifamily commercial mortgage-backed securities transactions, mainly because of “exceptionally large loan balances,” despite the strong market activity over the past year, according to Fitch Ratings.
  • San Joaquin County Employees’ Retirement Association committed $25 million to Marinus Capital Advisors, to be invested with the firm’s residential mortgage-backed securities strategy, according to sister publication Money Management Intelligence.
  • Prytania Investment Advisers has increased its Athena fund’s allocations to U.S. commercial real estate collateralized debt obligations, trust preferred CDOs and prime U.K. residential mortgage-backed securities in recent weeks.