CMBS dominates first wave of commercial property debt

U.S. commercial-property loans set to mature in 2023 and 2024 total nearly $900 billion. Against a backdrop of higher borrowing costs, falling prices and an increasingly risk-averse attitude among traditional sources of financing, these mortgages are coming due in a tougher capital-markets environment, and some could face challenges refinancing.

According to our analysis, commercial mortgage-backed security (CMBS), collateralized loan obligation (CLO) and investor-driven lenders are behind more than half of the approximately $400 billion in loans coming due in 2023. CMBS lenders are the largest single source, accounting for more than one-third of the outstanding balance. Bank loans maturing this year (provided by international, national and regional/local banks) will account for a smaller share of loans coming due than CMBS alone.

Volta Finance Ltd (LON:VTA) is a closed-ended limited liability company registered in Guernsey. Volta’s investment objectives are to seek to preserve capital across the credit cycle and to provide a stable stream of income to its Shareholders through dividends that it expects to distribute on a quarterly basis.

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