|$2.55 Billion CMBS To Hit Market
Deal is biggest since 1998
November 5, 2001
By MortgageDaily.com staff
General Growth Properties is bringing a $2.55 billion commercial mortgage backed securities (CMBS) deal to the market, according to a story in Barron's. The issue, which is reportedly the largest securitization to hit the market since 1998, is composed of 27 regional shopping malls divided into three pools, Barron's said.
While lodging and nursing home CMBS recently saw a rise in delinquencies, retail delinquencies remained relatively flat according to an announcement by Standard & Poor's last week. Fitch issued a recent commentary concluding that the attacks on September 11th will not cause a dramatic spike in defaults of Fitch-rated CMBS bonds, although Fitch does anticipate rising loan delinquencies, with hospitality properties being hardest hit. Fitch said CMBS investors will be protected from bond defaults because the collateral supporting most CMBS multi-borrower transactions is characterized by significant diversity in property type and geographic location.