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CMBS

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  • Investcorp has started up a $1 billion fund to invest in performing commercial and residential real estate debt.
  • Breaches of loan to value covenants in European CMBS are unlikely to lead to enforcement of security, according to a report published by Standard & Poor’s this week.
  • London-based real estate investment trust Liberty International has purchased £111 million ($217 million) of European commercial mortgage-backed securities bonds—its biggest CMBS foray yet.
  • John Westerfield, a longtime Morgan Stanley commercial real estate executive, has retired from his position as head of debt funds.
  • Moody's Investors Service has downgraded $1.27 billion of bonds from a collateralized debt obligation completed by LNR Properties.
  • Standard & Poor's downgraded seven classes of a Morgan Stanley commercial-mortgage backed securities conduit last week and a number of investors are up in arms, saying that the move was premature.
  • Barclays Capital’s £918 million ($1.83 billion) Gemini Eclipse 2006 has become the first major single-loan European commercial mortgage-backed securitization to be unable to remedy a breach in its loan-to-value covenants.
  • The Starling commercial mortgage-backed securitization issued by the Somerfield supermarket chain will be paid down following a £1.57 billion ($3.14 billion) takeover by rival supermarket chain Co-op, according to an official familiar with the situation.
  • Only AAA rated U.K. commercial mortgage-backed securities could come through a recession comparable with the early 1990s unscathed, according to research by Fitch Ratings.