Fitch: Attention Shifting to Maturing Five-Year U.S. CMBS 2.0 Loans
OREANDA-NEWS. Recent stumbles in the broader markets will continue to put pressure on liquidity and subsequently U.S. CMBS 2.0, with some five-year loans possibly in the crosshairs, according to Fitch Ratings in its latest U.S. CMBS weekly newsletter.
The financial markets are off to a volatile start in 2016, the effects of which have resonated into the CMBS industry. Interest rate and bond spread uncertainty as well as new regulatory requirements will continue to pressure liquidity. As a result, Fitch is closely monitoring five-year loans originated in 2011 that are slated to mature this year. Loans which have been underperforming will have a difficult time refinancing in a market facing numerous challenges.
Approximately 11% of Fitch's universe of loans in conduits from the 2011 vintage will mature in 2016. Of these five-year loans, over 12% have already been defeased, while only two loans (comprising 2.6%) are currently in special servicing.
Among the five-year loans maturing this year, there is no exposure to the energy markets in North and South Dakota. Additionally, exposure to the Houston oil market is relatively limited and consists of five loans totaling $179.6 million (7.5% of the total balance of five-year maturing loan this year).
Комментарии