Bulk Of CMBS Loans Ineligible For Refis

Posted by Orb Staff on May 08, 2009 No Comments
Categories : Commercial Mortgage

jority of commercial mortgage-backed securities (CMBS) loans that mature from now through 2018 will probably not be eligible for refinancing, [link=http://www.nytimes.com/reuters/2009/05/07/business/business-us-property-commercial-usa.html?_r=1][u]Reuters[/u][/link] reports. The news agency cites a Deutsche Bank report that says at least two-thirds of the $410 billion of maturing CMBS loans will not qualify. As much as 80% of the loans originated in 2007 will be unable to be refinanced, according to Deutsche Bank. Defaults have been hammering CMBS loans, which constitute about a quarter of the commercial real estate market. Deutsche Bank suggests that banks and insurance companies will see default levels comparable to, if not worse than, those seen in CMBS. SOURCES: Deutsche Bank, Reuters, New Yor

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