Despite declining figures recorded at year-end 2003, CMBS issuance is expected to flourish during the first half of this year with an estimated 2.98 billion (US$3.8 billion) slated. Deals should start to hit the pipeline over the coming month, market sources said.
According to figures released by Standard & Poor's, international CMBS issuance in 2003 decreased by 26% to 15.7 billion (US$20 billion). However, a surge of CMBS lenders and repeat issuers expanding into new jurisdictions could spur volume in 2004. "Whether looking at large or conduit loans, lenders are increasingly originating commercial property loans for the express purpose of securitization," said analysts.