Manatt's Tom Muller, co-chair of the firm's Real Estate & Land Use Practice, spoke to Commercial Property Executive about how likely the conduit financing recovery could reverse its course.
Commercial Property Executive reports that spreads for conduit loans can spike, but industry experts believe a sudden evaporation of conduit financing is less likely this time around because the economic recovery appears to have legs. They told the publication that though a reversal of the current CMBS financing recovery is always possible, it is unlikely.
Muller agreed that the conduit market "would not be as easily derailed again." He elaborated: "We expect the conduit market will be sustained for the next several years because the U.S. general economic recovery will be sustained for the next several years."
Read the article here.