7.2.21
Bloomberg reports sales of new bonds backed by commercial real estate are soaring to levels not seen in years even as sectors like hotels and malls face a long road to recovery from the pandemic. According to Moody’s Investors Service, loan delinquencies are expected remain “disproportionately high” for certain commercial mortgage-backed securities (CMBS). On the contrary, Wall Street still managed to generate $66.2 billion of debt backed by CMBS including those troubled sectors, which is the most in at least five years, according to Bloomberg. Many market observers argue these securities remain attractive to investors due to the extra investor protections built in and because they tend to be backed by stronger properties that are likely to perform well over the next few years.