X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-At the end of the second quarter of 2001, $40.7 billion in commercial mortgage-backed securities had been issued, well above last year’s second quarter of $28 billion and slightly below the record high of $43.4 billion in 1998. CMBS credit spreads tightened by 20 basis points, on average, as investors, seeking higher yields in a weak economy, moved from stocks to bonds, according to the Bear Stearns Real Estate Securities Monitor.

Looking ahead, most analysts are forecasting CMBS issuance will top the 1998 all-time high of $78.4 billion. Bear Stearns has revised its estimate upward from $75 billion to $85 billion. Unsecured debt issues by REITs year-to-date comes in at $4.8 billion compared to only $1.8 billion for the same period in 2000.

The Monitor, which is edited by Ross Smotrich, also notes that preferred REIT stock issued so far this year has been “significant,” amounting to $850 million as of June 18, a staggering increase over the $24 million for the second half of last year.

In addition, the overall Bear Stearns Real Estate Index moved up 15%, with the real estate specialty finance group rising 23.5% and real estate operating companies gaining 17.5%. On the other hand, REIT-associated operating companies dropped 76%.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.