NEW YORK, NY--The mood among U.S. CMBS lenders and third-party loan sellers is fairly optimistic, while servicers and traditional b-piece buyers are maintaining a more guarded view of the sector's health, according to Fitch Ratings in its roundup of last week's Distressed Debt Summit. The full roundup is featured in this week’s U.S. CMBS newsletter.Most agreed that commercial real estate values are on the upswing. However, the improvements are being driven more by compressed cap rates than by
increasing cash flow. Additionally, servicers are increasingly turning to
loan modifications with increased success.
In contrast, much of the market pessimism centers on the amount of loans in
special servicing. While new transfers into special servicing have slowed,
the inventory of assets to work through is large. Approximately $89.7
billion of loans are in special servicing as year end-2010 (YE’10),
compared to $73.9 billion at YE’09.
New issuance is seen as a positive sign to help temper the volume of loans
entering special servicing. However, the burgeoning trend is also of
concern among investors who are wary of competitive pressures weakening
underwriting standards.
Additional information is available in Fitch's weekly e-newsletter, 'U.S.
CMBS Market Trends', which also contains recent rating actions and an
overview of newly released CMBS research, including Fitch presales and
Focus reports. The link below enables market participants to sign up to
receive future issues of the E-newsletter:
'http://www.magnetmail.net/forms/display_form.cfm?fid=22908&mid=929091&rid=297925736&rtype=mm&uid=Fitch'
Contact:
Mary MacNeill
Managing Director
+1-212-908-0785
Fitch Inc., 1 State Street Plaza, New York, NY 10004
Lindsay Weichert
Director
+1-212-908-0398
Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278:
sandro.scenga@fitchratings.com.
Additional information is available at http://www.fitchratings.com/
No comments:
Post a Comment