July 1st, 2008
Commercial-Mortgage Bond Sales May Reach 12-Year Low
Sales of bonds backed by commercial real estate loans may fall to the lowest level since at least 1996 as investor demand for the debt slumps.
I am a big believer in backing up the truck and buying commercial-mortgage backed securities” as a weaker dollar draws foreign property buyers, BlackRock Inc. Home Loan Lending PHome Loan Lending resident Robert Kapito said at a conference on June 24. New York-based BlackRock is the largest publicly traded fund manager in the U.S.
Volatility
Swings in spreads are deterring some investors from buying, said Kent Born, a senior managing director of the commercial lending group at PPM America Inc. in Chicago. Home Loan Lending The firm has more than $72 billion in assets under management in the U.S.
“We have a chicken-and-egg problem,” Born said. “`We need a steady stream of new deals, among other things, to reduce volatility. But to have a steady stream of new deals, we need reduced volatility.”
Tags: assets under management, commercial mortgage backed securities, Home Loan, lending group, managing director, mortgage bond, ppm america, real estate loans, robert kapito