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The volume of commercial mortgage-backed securities issued this year should be about 20% higher than last year's volume, fueled largely by an increase in overseas deals, according to Moody's Investors Service.
But despite that rosy outlook for CMBS issuance, Moody's sees the threat of a recession raising questions about credit quality.
Moody's predicts that global CMBS volume will total $72 billion this year, with $52 billion of that total coming from U.S. deals. Last year, $48 billion of CMBS were issued in the United States.
But on a cautionary note, Moody's analyst Tad Philipp said the CMBS world might see its first real credit challenges this year, with some economists warning that a recession is on the horizon. Moody's expects commercial mortgage ...
Source: HighBeam Research, Despite Strong Market, Slowdown Causes Concern about CMBS...