S&P: CMBS Issuance Likely Flat
Issuance of commercial mortgage-backed securities is likely to stay flat or drop from its 2003 level of approximately $75 billion, according to Standard & Poor's.
Kim Diamond, a manging director in the S&P structured finance rating group, said, "Interest rates will likely rise modestly, but probably not until the latter part of the year. Issuance volume will benefit not only from sustained low rates, but also from refinances of first-generation conduit loans, which mature or reach the expiration of prepayment lockout periods."mCMBS issuance for 2002 was about $60 billion and issuance of the securities in 2001 was $74 billion.
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