187. Holding Pattern for CMBS Lenders; Cash is King for Banks; Liquidity, Anyone?
The TreppWire Podcast: A Commercial Real Estate Show
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Commercial Real Estate Debt - Is CMBS a Safety Valve?
There's three things going on in my estimation that are squeezing commercial real estate all at the same time. On the first side the CMBS market has really dried up here and it was problematic before the last 10 days. With treasuries moving sometimes 40 or 50 basis points within a eight hours window and with CMBS spreads blowing out there's no way to confidently hedge your lending right now. The banks because of this liquidity pressure are now squirreling deposits away right now they're in no mood to be putting more risk on their balance sheet whether it's in the form of warehouse lending or true balance sheet loans. When trust is lost in a firm like Credit Suisse you have more
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