Rather like the Hans Christian Anderson story about the little match girl, the news that BAML has successfully launched two CMBS deals in quick succession has flickered light into an otherwise cold and beleaguered primary issuance market. Not only do these transactions provide a clear indicator that there is still life in the market, but this news is the most positive development for the industry since the summer of 2015, when adverse macro-economic factors precipitated by concerns over Grexit and the Chinese financial crisis shut down primary CMBS issuance.
In fact, the successful launch of these deals could not have come at a more opportune moment given that the future of European CMBS currently hangs in the balance following the European legislature’s decree that CMBS will not qualify as a simple, transparent and standardised securitisation under the Securitisation Regulation.
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