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05 November 2009
CMBS loans - Risk on the Horizon
Many loans will begin amortizing soon

From an artilce by Loopnet and quoting some Bloomberg numbers, $31.3 Billion of CMBS will face higher debt service requirements in the next year. The interest only periods on the loans will be ending and the properties are not cash flowing as expected when the underwriters originally calculated the loans.

These are spread out all over the country and there is not a lot of securitzed commercial loans in Las Vegas that we know of, however this poses further risks to bank capital requirements and hence, limits credit availabiltiy as a whole, especially for the commercial property sector.

Loopnet article: click here.

Posted by cbprds at 12:33 PM | Link | 0 comments
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