CMBS Issuance Expected to Pick Up

After a recent slowdown in issuance, the commercial MBS market is poised to close out the first half with a burst of activity.

After averaging about $11 billion in February and March, monthly issuance slipped to a roughly $9 billion pace in April and May. But lenders report that loan demand has risen in recent weeks, a trend they attribute in part, to an uptick in interest rates. The 10-year Treasury yield, after hitting a recent low of about 1.9% in April, has climbed by some 40 bp. That has prompted some borrowers that were sitting on the fence to act.

(via CMA)