While the European primary CMBS market continues to grow, secondary market trading still faces obstacles that keep the flow at a trickle, market sources said.
There has been limited liquidity for traditional cash CMBS issues, and trading volume remains at a relatively low level. Moreover, the market is still plagued by recurring issues that have yet to be resolved, said Jim Savitsky, director of global ABS sales at Markit Group. In speaking with buyside players, the main concerns hinge on the lack of information available, the lack of cooperation from borrowers and the lack of activity on the trading front, he said. "There are still a whole host of factors that need to be worked out. Things are improving, but information flow still remains a great hurdle."