Last year was not the most resounding for commercial mortgage-backed securities. It's been different so far this year. How long that will last is uncertain.
Investors have snapped up about $24.6 billion of new commercial mortgage-backed securities so far in 2024, 170% more than the same period in 2023, according to data compiled by Bloomberg News. "Spreads on the riskiest portions of CMBS deals have been among the top performers compared to other widely traded types of credit."
Fears of recessions and the higher interest rates that would assume them have been fading away. "A once-frozen market for office towers is seeing deals again," is how Bloomberg put it. Some big investors like Don Peebles, chairman and chief executive officer of Peebles Corporation, have said there's now a "once-in-a-generation opportunity to buy" office buildings.
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