Goldman deal pushes CMBS sales past $11 billion mark
Goldman Sachs Group Inc. and Citigroup Inc. sold $876.45 million of bonds linked to U.S. commercial real estate, pushing 2010 sales to $11.5 billion as strategists forecast next year’s offerings will quadruple. Property owners are pushing banks to offer better loan terms as more lenders vie for a share of the $650 billion commercial-mortgage bond market. Between 20 and 25 institutions are seeking to originate loans they plan to package into securities, up from about five competitors a year ago, New York- based Standard & Poor’s said in a Dec. 2 report. Issuance plunged to $3.4 billion in 2009 from a record $234 billion in 2007 after the financial crisis froze credit markets.