New ETF Tracks Commercial Mortgage-Backed Securities | Page 2 of 2 | ETF Trends

The new ETF is “a healthy sign for market that had been left for dead in the credit crisis,” writes Ari Weinberg at “Like other non-Treasury credit markets, CMBS issuance fell off a cliff in 2008-2009 … The CMBS market has rallied hard, however, and some have begun to question the continued resilience of the market.”

U.S. banks increased financing for commercial real estate in the fourth quarter for the first time in almost two years, Bloomberg reports. Default rates are lower and lenders are unloading more foreclosed properties.

“Lending has been constrained by upheaval in the market for commercial mortgage-backed securities, the financing engine that drove property deals and prices to record highs in 2007,” according to the report.

“We still face significant headwinds in commercial property but the latest findings are encouraging,” Chandan Economics told Bloomberg.