Capital Still Tight But Economy Showing Positive Signs
SOURCE: Trading Markets
The U.S. economy has shown signs of an easing credit crunch since the Federal Reserve's rescue of investment bank Bear Stearns in mid-March, but capital will continue to be tight. The commercial real estate industry has been affected due to the lack of capital. As well, the inability to sell loans to investors has also prompted a slowdown.
Even with the challenges, small, simple commercial real estate deals are able to find their capital. That said, larger more complex deals are still having a difficult time. The lenders that are active are private investors, pension funds, and insurance companies.
It is felt that the commercial mortgage-securities market won't really bounce back fully until the volatility reduces and the more serious bond buyers return to the market. Even though things are difficult now, there are signs beginning to show that may mean a change is coming.
Read full report »
The U.S. economy has shown signs of an easing credit crunch since the Federal Reserve's rescue of investment bank Bear Stearns in mid-March, but capital will continue to be tight. The commercial real estate industry has been affected due to the lack of capital. As well, the inability to sell loans to investors has also prompted a slowdown.
Even with the challenges, small, simple commercial real estate deals are able to find their capital. That said, larger more complex deals are still having a difficult time. The lenders that are active are private investors, pension funds, and insurance companies.
It is felt that the commercial mortgage-securities market won't really bounce back fully until the volatility reduces and the more serious bond buyers return to the market. Even though things are difficult now, there are signs beginning to show that may mean a change is coming.
Read full report »
