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CRE Finance World, Winter 2012

Roundtable: Outlook 2012 Brian P. Lancaster: Brian P. Lancaster: How closely are the multifamily mortgage market and the With all that’s going on in Europe and the U.S., the first half agency securities market tracking the overall CMBS market? of 2012 will undoubtedly be volatile. Most of the topics we’ve discussed here today are likely to be a key focus at the CREFC David Brickman: January Conference in Miami. I look forward to seeing you there As the agency CMBS market continues to grow with active issuance, and continuing our discussion. there appears to be a growing bifurcation between it and the CMBS market. There is a still a small to moderate correlation between On behalf of the Commercial Real Estate Finance Council and the two (and certainly both have been tending to move with credit CRE Finance World magazine, I want to thank everyone for your markets more generally), but the significantly lower volatility of the participation and insights. Agency CMBS market over the past year, compared to say 2008 and 2009 is notable. As the aggregate float in the sector continues TIAA-CREF Asset Management provides investment advice and portfolio to expand, as we at Freddie Mac alone intend to issue upwards management services to the TIAA-CREF group of companies through the of 20 billion per years in the coming years, I would expect this following entities: Teachers Advisors, Inc., TIAA-CREF Investment Man- separation to continue, with Agency CMBS ultimately becoming agement, LLC, and Teachers Insurance and Annuity Association® (TIAA®). a sector unto itself. Teachers Advisors, Inc., is a registered investment advisor and wholly owned subsidiary of Teachers Insurance and Annuity Association (TIAA). Brian P. Lancaster: Past performance is not indicative of future results. The material is for What, if any, trends in credit and underwriting are you seeing informational purposes only and should not be regarded as a recommendation and/or do you think are likely to emerge? or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all David Brickman: entities or persons. One of the beneficial outcomes of the Agency and FHA presence in the multifamily market is it instills a level of credit discipline in the market that I think will continue into 2012. While changes on the margin in terms of structure and products is inevitable, I think it is highly unlikely we will see any significant changes in underwriting standards or credit quality in the multifamily space in the next year. CRE Finance World Winter 2012 22


CRE Finance World, Winter 2012
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