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CMBS

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  • A graph of year-to-date issuance by region and sector, as reported by Securitization Intelligence, accompanied by a bird's-eye view of the activity seen in each sector last week.
  • Barclays has been hit with two separate lawsuits over losses from mortgage-backed securities it sold to Germany’s Landesbank Baden-Wuerttemberg and Sealink Funding.
  • PCM Fund has eliminated an investment policy that it would invest at least 50% of total assets in commercial mortgage-backed securities, thus opening the way to expand its exposure to a broader range of assets classes, including agency CMBS, private-label MBS, investment-grade corporate debt securities and high-yield corporate debt securities.
  • The U.S. Federal Housing Finance Agency is working with the Department of Treasury on developing a new model for Fannie Mae and Freddie Mac mortgage-backed securities that would allow private investors to share some of the credit risk.
  • Standard & Poor’s is proposing changes to its commercial mortgage-backed securities ratings criteria that will incorporate a so-called expected case analysis into its methodology.
  • Yields on Fannie Mae current-coupon mortgage-backed securities slipped 0.07 percentage points to a record low 2.57%, according to Credit Suisse.
  • Risk appetite is cooling significantly in the commercial mortgage-backed securities market—a marked shift in tone since the first quarter when spreads on new issues were tightening to levels not seen in almost two years, according to sister publication Real Estate Finance Intelligence.
  • The repayment index of loans in commercial mortgage-backed securities in Europe, the Middle East and Africa is set to deteriorate further as 21 loans valued at nearly EUR2.4 billion ($2.97 billion) are due at a time when financing conditions have not improved, according to Fitch Ratings.
  • Nearly half of the loans in German and U.K. commercial mortgage-backed securities have defaulted at maturity, with little hope of improvement as the strongest loans have already been repaid, according to Standard & Poor’s.