Commercial Mortgage

Fitch Poised to Take Action on Recent CMBS 

Fitch Ratings this week said it expects 2006 through 2008 vintages of commercial mortgage-backed securities (CMBS) to “substantially underperform” earlier vintages. These vintages are vulnerable to significant performance issues, given their origination at peak market conditions and weaker underwriting standards, the rating agency said in a report this week. The news arrives as the latest indication that the worst of the CMBS fallout is yet to come, as the CMBS market tends to trail behind the residential MBS market in terms of both gains and losses.