In a recent Bloomberg article, commercial-mortgage backed securitizations continue to benefit from interest rates, which are expected to stay near zero through 2015.
This will push investors toward riskier assets as well as aid homeowners with loans coming due. The origination pace is steadily increasing to meet the demand of bond buyers, which will lead to a lending boom for borrowers.
Senior bonds — shopping malls, hotels and skyscrapers — have narrowed 30 basis points to 145 basis points more than benchmark swap rates since November, which is the tighest level since 2008, according to JPMorgan Chase (JPM).
Here's a bit from the story:
“Improving financing conditions are a clear positive for the legacy CMBS market,” said the JPMorgan analysts led by Ed Reardon in New York, referring to commercial-mortgage backed securities sold during the peak of the property bubble before credit markets froze after the September 2008 collapse of Lehman Brothers Holdings Inc. “The increased availability of leverage will allow more loans to refinance.”