RealEstateJournal | Commercial Lending Is Showing Signs of Strain
RealEstateJournal Commercial Lending Is Showing Signs of Strain
Commercial Lending IsShowing Signs of Strain
By Christine Haughney From The Wall Street Journal Online
Rating services are flagging some of the first signs of strain in the booming commercial-lending market.
Moody's Investors Service Inc., which rates and monitors commercial mortgages that are packaged and issued as bonds, says in a report released this morning that the commercial-mortgage market is showing two disturbing trends. Loan-to-value ratios, which measure the amount of a loan in relation to its market value, and debt-service coverage ratios, which measure the monthly amount the borrower pays in relation to the property's cash flow, are carrying more risks than they ever have before, according to the report.
Commercial Lending IsShowing Signs of Strain
By Christine Haughney From The Wall Street Journal Online
Rating services are flagging some of the first signs of strain in the booming commercial-lending market.
Moody's Investors Service Inc., which rates and monitors commercial mortgages that are packaged and issued as bonds, says in a report released this morning that the commercial-mortgage market is showing two disturbing trends. Loan-to-value ratios, which measure the amount of a loan in relation to its market value, and debt-service coverage ratios, which measure the monthly amount the borrower pays in relation to the property's cash flow, are carrying more risks than they ever have before, according to the report.
posted by Patrick Leblanc at 3:14 AM
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