Despite some obstacles, CMBS remains key source of financing for commercial real estate.

CMBS issuance in 2018 might be below last year’s level.

Conduits lenders are often willing to make loans make loans that cover up 75 percent of the underwritten value of an apartment property.

Some people are looking at retail loans as the next “big short”, says Manus Clancy, senior managing director and the leader of applied data, research, and pricing departments at Trepp.

Issuance is marching ahead at a steady pace, but lenders are adapting to a market where business from maturities is declining.

According to the ratings agencies, the gap between their estimated cap rates on conduit loans and those being underwritten by the market is growing.

The continued liquidity for the riskiest tranche of CMBS loan pools is good news for borrowers.