Capital markets are shifting - some data
It's a tough month for everyone, and I'm grateful to have work I can do from home. But let's get down to what's happening in the capital markets.

Others have interesting data to share about the CMBS market, but this chart is our own data about \*balance sheet\* commercial mortgage lending by banks and credit unions across the country.

https://preview.redd.it/6wlveg6d5wn41.png?width=896&amp;format=png&amp;auto=webp&amp;s=6e97fb5f0b3d9366a154b6cc7698c48aafe1a7d1

Three things happening right now:

1. Average spread over 10 year UST is rising (the thick blue line going up while the green line goes down). Banks on average are risk-averse, and many see commercial mortgage loans are riskier now.

2. Minimum commercial mortgage rates are dropping with the market (dotted blue line mirroring the green line). Loans that are deemed less risky have GREAT pricing in today's market.

3. There's more variation between multiple loan quotes for the same deal than there used to be. There's less consensus on how to price risk.    


More explanation on this: [https://www.stacksource.com/blog/how-to-find-financing-in-the-covid-19-era](https://www.stacksource.com/blog/how-to-find-financing-in-the-covid-19-era)

Commercial mortgage rates updated daily: [https://www.stacksource.com/commercial-mortgage-rates](https://www.stacksource.com/commercial-mortgage-rates)
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