No doubt there’s still bad news around the corner, but it’s encouraging to see positive news as well. Not only is unemployment down to 2009 levels while the housing market is genuinely showing signs of bottoming out, but CMBS lending is creeping up. From WSJ:
Standard & Poor’s said the issuance of U.S. commercial mortgage-backed securities improved last year, though issuance fell below its expectations due to uncertainty and volatility resulting from the European debt crisis and other macroeconomic events.
Aggregate CMBS issuance for 2011 was $32.7 billion, below S&P’s forecast of $35 billion. S&P noted CMBS activity increased significantly early in the year, but the pace of issuance has since slowed.
For 2012, S&P again projected $35 billion in CMBS issuance. While global economic headwinds are expected to temper the near-term expansion of CMBS issuance, S&P credit analyst David Mollin said commercial real estate fundamentals have improved modestly in recent years and noted securitization will continue to play a significant role in the sector’s recovery.