Bundles of lower-rated mortgages tied to hotels, offices and retail properties across the U.S. have lagged behind the debt markets’ rebound, a sign of the pandemic’s lingering blow to commercial real estate. An index tracking commercial mortgage-backed securities with a triple-B rating—the lowest broad investment-grade tier—remains below pre-pandemic levels, despite a broad recovery in credit markets. Indexes tracking mortgage-backed bonds with higher concentrations of hotel and retail properties are struggling even more.

Source: Wall Street Journal September 21, 2020 09:33 UTC