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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
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