Checking in on the CMBS Market

As the coronavirus spread and upended the world economy, businesses of all types were forced to temporarily shut down. The resulting loss of revenue has left many property tenants struggling to pay obligations to landlords, and a significant number of retailers declared bankruptcy. The $600 billion Commercial Mortgage-Backed Securities (CMBS) market encompasses many of the businesses most impacted, such as restaurants, office buildings, hotels and malls. Some investors are beginning to fear that losses may occur in their fixed income portfolios, but are such fears overblown? In this piece, we address the state of the CMBS market and detail our take on the sector.