Original article by Joy Wiltermuth
In an interview with MarketWatch, Jake Remley, Senior Portfolio Manager at Income Research, shared his views on the issuance of commercial mortgage-backed securities (CMBS), after its March freeze and as the U.S. starts to slowly lift restrictive measures. Remley noted how CMBS is starting to show signs of life, while underscoring that some new bond deals have excluded hard-hit property types, namely hotel loans.
Ramley also spoke about the TALF program and how “the Fed is signaling they’re willing to support liquidity.” Remley also said the central bank is sending a message that not all types of debt are welcome, since eligibility is partially dependent on ratings. “That is going to create winners and losers and have some knock-on effects in the economy.”
