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Trepp Says Q3 CMBS Issuance Surges
So far, 2017 is looking brighter for CMBS issuers, who have experienced near-perfect conditions for lending. As a result, nearly $27 billion in new issuance hit the market in Q3, the highest quarterly total in three years, reports Trepp.
Drivers of the issuance are a combination of tighter spreads than those seen in 2016, low interest rates, yield-hungry investors, an absence of volatility, and an ample volume of loans in need of refinancing.
Year-to-date issuance hit $58.6 billion through the first nine months of the year, a 38% increase in volume compared to the same period in 2016.
The vertical risk retention structure under the new Dodd-Frank risk retention provisions was employed in 19 CMBS deals, totaling $13.1 billion in Q3. That structure continues to be the most frequently-used option among issuers, especially for lenders in the single-asset space. An additional 17 deals, totaling $10.8 billion, were structured with a horizontal structural holding last quarter.
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- ◦Financing
