‘Everything Is Frozen’: CMBS Bond Volume Falls By 85%
February 20,2023 | Olivia Lueckemeyer | Bisnow
The issuance of commercial mortgage bonds has taken a sizable hit as buyers and lenders react to the fallout of rising interest rates.
New data compiled by Bloomberg found that only $4.3B worth of CMBS bonds have been issued so far this year, an 85% drop from the $29.4B issued at the same point last year.
The decline in lending volume comes as the Federal Reserve’s battle to tamp down inflation has put a serious dent in the purchase and refinancing of commercial properties.
Investors say a recent string of defaults, particularly on office and retail loans, is making matters worse.
