Investors avoid the CMBS ‘minefield’

Analysts are struggling with valuations in the asset class

Big investors are holding back from placing money in commercial mortgage-backed securities, as they react to the complexity of the underlying assets and a lack of transparency in the asset class.

Last month, UK supermarket Tesco said it would sell debt backed by its commercial property portfolio. Analysts said it was the first property securitisation sold to investors in two years, not counting the securities issued as collateral in repurchase agreements with central banks in Europe.

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