Thursday, June 26, 2008

CMBS Sales May Fall To 12-Year Low


From Bloomberg:

Commercial-mortgage backed securities offerings dropped to $12.2 billion in the first half of the year, from about $137 billion in the same period of 2007, according to JPMorgan Chase & Co. Analysts at the firm, Moody's Investors Service and Royal Bank of Scotland Group Plc cut their forecasts. JPMorgan predicts sales will fall to $20 billion this year from the record $237 billion in 2007 and the lowest since 1996.

The decline shows the Federal Reserve's seven interest-rate cuts since September had limited success in reviving the market for securities derived from real estate assets after the collapse of subprime mortgage-related bonds. Banks and financial firms, reeling from $400 billion in writedowns and credit losses, are also less willing to make new loans.

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