Trepp Reports CMBS Post Solid Gains Across the Board in October

NEW YORK, NY -- The CMBS market posted nice gains across the board in October, helped by the resolution of the debt ceiling fight (for now) and more conviction that Fed bond buying will remain in place for the foreseeable future.

The settlement on both matters, which weighed on investors in September, helped drive interest rates lower. In turn, that gave heft to the argument that asset prices would continue to rise and refinancing would be an option for a larger percentage of legacy loans.

 (The turnaround could have something to do with CWCapital's decision to put roughly $3 billion in distressed assets out for bid).

While driving spreads lower, CMBS investors were clearly in "don't fight the Fed" mode. Plenty of worries remain, and in a less accommodative environment, concerns over anemic job growth as well as Sears and JC Penney might weigh on the CMBS market. However for now, it's "risk on," and that is clearly helping pull spreads tighter.

For a complete copy of the company’s news release, please contact:

Eric@greatink.com