CMBS may be less of a problem than is feared

The downside risks to property prices from failed refinancing of commercial mortgage-backed securities (CMBS) could linger for much of this decade. Over the next one to two years, however, relatively few of the loans that underpin the UK’s outstanding stock of CMBS are due to be refinanced. What’s more, continued, but modest, economic growth over that period should make loan refinancing easier. Accordingly, there are reasons to temper CMBS-related fears.