This article from FeedBlitz was published on 10/1/08 and explains that all sectors of the
commercial mortgage market except the Commercial Mortgage Backed Securities (CMBS) sector
continue to expand their investments in commercial mortgages.
Commercial Real Estate Debt Still Expanding
The CMBS market may be frozen, but the level of outstanding commercial real estate debt
continued to expand during the second quarter. Commercial and multifamily mortgage debt outstanding rose 1.5% in the second quarter, to $3.44 trillion, the Mortgage Bankers Association reports, based on an analysis of the Federal Reserve Board Flow of Funds data.
Amid the current credit crunch turmoil, commercial and multifamily mortgage debt outstanding
gained $51.3 billion from the first quarter of 2008. Multifamily mortgage debt outstanding
alone grew to $875 billion, an increase of $16.3 billion or 1.9% from first quarter levels.
“Despite the persistent credit crunch, investors increased their holdings of
commercial/multifamily mortgages in the second quarter,� says Jamie Woodwell, MBA’s Vice
President of Commercial Real Estate Research. “The only major investor group to see a
decline in their holdings was the commercial mortgage-backed securities (CMBS) market, which
has been most profoundly affected by the credit crunch. Other investor groups including
commercial banks, life insurance companies, thrifts and the government-sponsored enterprises
(GSEs) increased their holdings over the quarter.�
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