Wall Street is back originating new commercial real-estate loans to package into bond deals, with the hitch that it's more expensive for landlords.
Wall Street in May restarted its commercial-real estate debt machine after activity recently ground to a halt, with the hitch that it’s now more expensive for landlords to afford financing.
Goldman Sachs analysts pegged the average coupon on new loans from Wall Street to finance hotels, shopping centers and other commercial property types at slightly more than 7% , roughly double the pandemic lows of closer to 3.5%. CMBS is priced at a spread, or premium, above the risk-free 10-year Treasury rate TMUBMUSD10Y , which was at 3.75% on Friday.
The worry is that credit has been harder for landlords to obtain as billions of dollars in loans come due, and as property prices wobble. This backdrop has some major industry heavyweights already this year handing back the keys to lenders, instead of standing by struggling properties.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fox News opinion hosts go wall-to-wall in Trump's defenseFox News opinion hosts offered up, without hesitation, a full-throated, wall-to-wall defense of twice-indicted Trump
Read more »
Asia markets slide further in early trading as Wall Street pauses market rallyInvestors in the region also further assessed economic data that has been released this week.
Read more »
Amazon’s stock rallies as analyst says Wall Street doesn’t give it enough creditWall Street is underestimating Amazon.com Inc.'s ability to become more efficient, according to an analyst.
Read more »
Top places to invest your money right now: 6 Wall Street firmsHere's exactly where 6 top investment firms recommend putting your money right now as US stocks start to break out
Read more »
Wall Street climbs as yields slip on jobless claims dataThe tech-heavy Nasdaq led gains, though investors remained cautious ahead of next week's Fed meeting.
Read more »
Behold Wall Street's new bull market, maybePart of the uncertainty is that there is no set definition of a bull or bear market.
Read more »