Some people are looking at retail loans as the next “big short”, says Manus Clancy, senior managing director and the leader of applied data, research, and pricing departments at Trepp.
Issuance is marching ahead at a steady pace, but lenders are adapting to a market where business from maturities is declining.
According to the ratings agencies, the gap between their estimated cap rates on conduit loans and those being underwritten by the market is growing.
The rankings reflect total dollar volume financed in calendar year 2016.
The continued liquidity for the riskiest tranche of CMBS loan pools is good news for borrowers.