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CMBS

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  • Bids wanted in competition for European securitized products have come back in force, with more than 30 totalling £1 billion ($1.63 billion) last week and another 15 totalling £500 million ($815 million) this week.
  • The CMBS downgrade onslaught continued this week with dozens of cuts across multiple jurisdictions.
  • Goldman Sachs and JPMorgan are preparing to resume their conduit lending programs, with Goldman sending out a term sheet that spells out the parameters of the bank’s march back into the securitized lending market.
  • The European Commission has informed state-backed banks to consult it before offering to buy back securitizations on their call dates and not to use government funds in those cases.
  • Delinquencies on commercial real estate collateralized debt obligations jumped in September, with the Fitch CREL CDO Delinquency Index rising from 7.5% to 8.7%.
  • Off-balance sheet special purpose entities still have a place in the world’s modern financial markets, but structured investment vehicles and collateralized debt obligations are dead and buried, according to a report from the Basel Committee on Banking Supervision.
  • Interest-only commercial mortgage-backed securities bonds rallied last week, with a 15-bond bid list trading at tighter-than-expected levels.
  • Realpoint, the Horsham, Pa.-based rating agency, is projecting a year-end delinquency rate of 5.5% to 6% for commercial mortgage-backed securities.
  • Life insurers holding private commercial mortgages saw their second quarterly gain in a row and their best performance in nearly two years.