STRUCTURED WEEKLY: $20 Billion of CMBS Loans to Be ‘Stranded’

A large swath of retail and hotel property loans may see a key avenue for refinancing shut as the pandemic continues to rock commercial real estate.

Almost $20 billion of the loans that mature this year and next won’t be able to be refinanced through the commercial mortgage-backed securities market, according to Cantor Fitzgerald LP. This effectively makes the loans, which were sold to investment banks on Wall Street and then bundled into bonds “stranded,” analysts wrote in a Thursday report.

Travel and entertainment have been particularly hurt by social distancing, which has sent the hotel industry into one ...