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Volume 2012 - Number 7

February 17, 2012

Analysts See Slower Recovery of CMBS Market in 2012 Due to Global Debt Concerns, Credit Volatility

Analysts covering the commercial mortgage-backed securities market are cautiously optimistic, predicting continued volume growth and better performance of CMBS in 2012, although at a much slower pace compared to the past two years. CMBS investors will tend to be cautious this year because of continuing economic uncertainty worldwide, particularly the European debt crisis, and a tougher debt market that may reduce liquidity, analysts said. The CMBS market has not yet fully recovered from its almost total collapse in 2009 as a result of the financial crisis. Although recovery began in 2010, issuance remains...

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This weekly covers the secondary mortgage market, including mortgage-backed securities and asset-backed securities.

 

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Yes, they don’t reflect current market conditions and need to be adjusted to allow borrowers with below 700 FICO scores and smaller downpayments to qualify for mortgages.
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No, the standards are appropriate given current risks and the major default problems the mortgage market has experienced over the past several years.

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