Loose Fed policy and falling default rate drive CMBS rebound

FRANKFURT, GERMANY - NOVEMBER 14:  Jean-Claude....

A shortage of supply and loose money policy by the Federal Reserve have combined to fuel increasing returns on commercial mortgage-backed securities, and investors are moving into the once-feared bonds, analysts said. Buyers are encouraged by the fact that a long-predicted commercial real estate collapse never happened. Bank of America forecast that high-yield defaults will drop to 2% next year, down from 13% at the worst of the credit crunch. Full story here

No comments:

Post a Comment