Credit Suisse is reportedly eliminating its CMBS loan origination unit, according to several market reports.
The bank will continue its secondary trading operation, according to a Reuters report.
The new issue CMBS market remains challenged. According to a report issued this week by Annaly Capital Management, opportunistic CMBS issuers will make loans but only when they can clearly get out quickly and profitably.
"In this environment, bargaining power favors the well-capitalized issuers and investors," said analysts in the report. "CMBS investors are demanding quality in new offerings. After all, they theoretically live with the credit performance of the underlying mortgage assets much longer than the time it takes the issuers to originate and sell them."