CMBS makes a comeback

Lenders made $94bn in loans bundled together and sold off as bonds last year, and property execs and bankers expect this to rise in 2015

CMBS makes a comeback

A hunt for yield and a gradually improving property market are bolstering a key engine of US commercial property lending, helping borrowers to refinance but also reigniting fears the market is getting overheated.

In all, lenders made $94 billion in loans bundled together and sold off as bonds to investors in 2014, the most since 2007 for the product known as commercial mortgage-backed securities, according to trade publication Commercial Mortgage Alert.

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