Banks' Real-Estate Reservations Fuel CMBS Renaissance -- Market Talk

Dow Jones
2024-12-20

1228 ET - Banks' concerns about potential new Basel III Endgame capital standards have reduced their appetite to keep commercial real estate loans on their balance sheets.Instead, they are selling off more exposure to real-estate loans in the form of commercial-mortgage-backed securities, says Lisa Pendergast, executive director of the Commercial Real Estate Finance Council. Issuance of CMBS is on track to more than double this year compared with 2023 issuance, Pendergast says. She adds that if the new Basel rules fizzle under the Trump administration, banks' real-estate lending appetite may return. The White House turnover will bring "some friendlier folks in D.C. on the regulatory front," she predicts. (matt.grossman@wsj.com, @mattgrossman)

 

(END) Dow Jones Newswires

December 19, 2024 12:28 ET (17:28 GMT)

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