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Real Estate Briefing - Categorized | Commercial property Watch, Market Moves more

When good news for real estate is bad

Posted on 31 January 2013

A new worry is threatening the rally in the rebounding market for commercial mortgage-backed securities: Property owners have started to pick up the pace of resolving problems with distressed loans. That is bad news for bondholders who paid up to buy such securities on the assumption they would keep paying a high interest rate for a longer period.
This month, some investors have been hit with losses as their commercial-mortgage securities, or CMBS, that had been steadily rising in value for months went into reverse. For example, early this month investors were willing to pay as much as $116.13 for securities with a face value of $100, up from $100.81 in August 2011. Last week they were trading at $114.81………………………………………..Full Article: Source


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