Moody's CRE | CMBS New Issuance Market Unfreezes, Confirming Predictions of More Conservative Underwriting

Reading the 2021 CRE Tea Leaves to Predict 2022 Securitization Volume

Experts dig into 2021 CRE loan securitization data to analyze market evolution and examine what may happen in 2022.

How Will Higher Rates Affect Upcoming CMBS Maturities and COVID Impacted Loans?

In this article, Moody’s Analytics analysts review how higher interest rates have increased the 2nd quarter CMBS new issuance minimum debt yield to 7.12%. In contrast, 29% of ~$77.8 billion of COVID-19 affected loans have a debt yield less than 6%. This piece focuses the analysis on CMBS loans that mature before year end and creates an estimate that $7.7 billion in CMBS loans may fail to mature. If these loans are extended, the existing coupon is significantly lower than the ~6% market coupon required on a new loan, so the related CMBS bond extensions will decrease investors’ returns.

CMBS Newsflash – Securitized CMBS Color

In this latest CMBS Newsflash, experts from Moody’s Analytics focus on securitized CMBS color, identifying that there is high demand for fixed and floating multifamily exposure while retail is still being evaluated and placed.