This month Freddie Mac sold $734.5 million in commercial mortgage-backed securities, with more than 80% of the loans for student housing owned by landlord Kayne Anderson. The deal highlights investors' rising interest in student housing, once considered an alternative asset class.
The commercial mortgage-backed security market has done well this year, but questions are growing about its continued traction as interest rates are expected to rise. Right now there is about $7.5 billion worth of securities about to be marketed by banks.
The version of the 2013 National Defense Authorization bill approved by the House last week would spend $369 million for military and infrastructure improvements on Guam as part of a plan to transfer 5,000 U.S. Marines from Japan to Guam in the next few years. Work would include construction of a hangar at Andersen Air Force Base. The Senate still has to consider the bill. However, the White House has said it would veto the House version.
A change in Standard & Poor's rating methodology and other issues has prompted the agency to downgrade a number of commercial mortgage-backed securities. The downgrades caused bonds backed by commercial mortgages to fall. A Dwight Asset Management senior portfolio manager said the CMBX Series 5 dropped 3 cents on the dollar after the downgrades. More downgrades are likely.