By Huxley Somerville
The rate of U.S. CMBS financing has been ascending slowly over the last three years. Assuming the macro environment is stable, Fitch expects more of the same in 2013.
CMBS issuance increased strongly, to roughly $50 billion at the end of 2012 (from just over $33 billion in 2011). Fitch does not expect such a large increase in 2013 and believes the CMBS industry will be the stronger for it. That said, $60 billion of new CMBS issuance is not out of the realm of possibility before the year is out.
The growth of new issuance in 2012 and slated for 2013 inevitably raises the decades-old question of where we are at with respect to CMBS underwriting?
The short answer sounds quite similar to the beginning of 2012: less stringent than a year ago, but still relatively strong. Standards have declined slowly over the....