Trends in capital markets and federal policy that are just emerging are going to manifest over the midterm, predicts Michael Farrell, chairman and CEO of Annaly Capital Markets. He believes CMBS will take off as underwriting criteria become more clear. In addition, the GSEs' role will change to one of insurer of first resort for their particular market. Also, the industry will be facing a steep yield curve for some time, he concludes. "That will mean more pressure on asset prices," he said.