CMBS issuance dropped to levels not seen since 2012 in the first quarter, totaling a "mere" $5.98 billion that was 12% less than fourth-quarter volume and 79% less than the same period a year ago, according to a new report from Trepp and Commercial Real Estate Direct.
Rising interest rates and increasing bond spreads were the culprits as only four conduit deals were priced during the first quarter, and two were backed solely by loans with five-year terms.
Trepp said that issuers were "stymied every step of the way" when they wrote loans and when they tried selling them through the CMBS market.
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