Wider spreads in CMBS can bring down issuance in the sector, according to today's emailed report from Standard & Poor's analysts.
They said that the recent spread widening experienced by the sector if sustained "will moderately lower CMBS issuance."
The rating agency's issuance regression that incorporates 'AAA'/'BBB' spreads as well as the 10-year U.S. Treasury currently projects $6.6 billion per quarter. This is a drop from $7.7 billion.
Analysts said that if spreads remain in their current range, the firm's full-year projection will decrease by around $5 billion to $30 billion.
