18.07.2013 21:32:00
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Moody's: US CMBS conduit loan leverage reaches a new CMBS 2.0 high, underwriting at 2005 levels
New York, July 18, 2013 -- Loan leverage and the share of interest-only loans in conduit commercial mortgage backed securities set new "CMBS 2.0" highs in second-quarter 2013. With debt service coverage beginning to come down from historical highs, conduit loan underwriting quality is now similar to that of the 2005 vintage but declining rapidly towards that of the 2006 vintage, according to a new report from Moody's Investors Service, "US CMBS Q2 Review: Ten-Year Loans, Five-Year Memories."