The market for commercial mortgage bonds appears to be holding steady and is in fact performing better than most analysts thought it would. The recent spurt in growth for commercial mortgage bonds has made many analysts less worried that the commercial market was next in line for a credit crunch. This latest news is excepted to help investors get interested in these markets again, following a dry patch as many waited to see what was going to happen in the markets before committing themselves. To this point, commercial mortgages appear to be hanging tough.”Limited origination volume will result in limited new issue after the current pipeline is priced,” said Alan Todd, head of CMBS research at JPMorgan Chase & Co., a top three underwriter of the bonds.”It remains to be seen whether we have achieved a meaningful turn in sentiment,” said Chris Sullivan, chief investment officer at the United Nations Federal Credit Union in New York. “It is likely that spread volatility will continue to be elevated, and delinquencies will drift higher.”"The banks have to raise capital and offload assets; … it’s the prudent thing to do,” stated Bruce Richards, president and chief executive officer of Marathon Asset Management.
Related reading: Commercial Mortgages
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