CMBS

The ongoing pandemic and the resulting weak global economy will lead to tighter-than-expected underwriting of structured transactions and continue to weaken their performance, but investors are nevertheless starting to open their arms to more risk.

Though the majority of retail real estate investment trusts carry investment-grade ratings, landlords may not see their credit metrics return to pre-pandemic levels until 2022.

The coronavirus impact in the U.,S. alone has resulted in a 30% year-over-year decline across securitizations, CLOs and MBS.

Moody's says anchor stores like J.C. Penney and Neiman Marcus represent only a small portion of CMBS retail exposure, but their deteriorating fortunes will hasten the decline in credit quality of CMBS-held loans backed by Class "B" and "C" malls.

The net assets in Blackstone Real Estate Income Master Fund declined to $553M on May 31 from $773M at year-end 2019.

The single-borrower deal, sponsored by Brookfield, was pulled in the spring due to market conditions that halted most securitizations at the onset of the COVID-19 outbreak.

Tricon American Homes launches the fifth securitization since mid-May secured by loans that finance institutional ownership and management of single-family residential rental homes.

The first-time transaction under Fortress Investment Group's new shelf will be backed by long-term leases on 11 Amazon fulfillment and last-mile distribution centers – three of which remain under construction.

While the multifamily loan forbearance rate is lower than the most pessimistic projections, Pat Jackson says borrowers are hardly out of the woods yet.

For banks with assets between $10 billion and $100 billion, the average exposure is 165% of capital.