While commercial lending has been relatively diminished since the regional banking crisis of this past spring, with alternative lenders and life insurance companies carefully picking their spots as the banks sit on the sidelines, the markets for CMBS and CLOs have almost completely collapsed — and that’s putting it politely.
Hits to CMBS and CLOs Are Bad News for Commercial Real Estate Financing |
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The markets for both have pretty much collapsed in recent months, with defaults a particular threat to CRE overall |
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If someone from CRE finance had fallen asleep in September 2019, a la Rip Van Winkle, they might have woken up assuming that two of the staid pillars of lending — commercial mortgage-backed securities (CMBS) and collateralized loan obligations (CLOs) — were as solid and useful as they had been the night they turned in.
Alas, like Van Winkle's rude awakening, they will shortly learn it's a different America. |
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