Conduits lead to new era in European CMBS

With banks more cautious about straight lending and bond spreads tight, real estate securitization through commercial mortgage backed securities is becoming increasingly popular, with conduit issuance taking a growing share of the market. Laurence Neville reports.

CMBS: The basics | The potential pitfalls in the growth of CMBSIs Germany finally ready to accept CMBS issuance?

Gilbert: The influx of conduit
issuers to CMBS is helping to
create a virtuous circle

The European commercial mortgage backed securities market is going through a period of huge change. It started in the mid-1990s and its annual issuance hovered around the €20 billion a year mark that it reached at the turn of the millennium. This year, though, issuance has already hit €18 billion, and is expected to reach €28 billion by year end.

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