Morgan Stanley has projected a “K-shaped” bounce for commercial real estate, with bonds backed by industrial properties doing well while those on hotels, retail and offices languish. So reports Bloomberg.
A team of Morgan Stanley analysts led by Richard Hill noted “idiosyncratic risks and rising loss expectations,” highlighting the importance of due diligence among investors in commercial mortgage-backed securities.
The Morgan Stanley analysts added that the overall CMBS delinquency rate of 7.8% “may be understated.”