Pursuits
CMBS Market Starts to Get `Frothy' as Valuations Rise, Voya Says
- Voya Investment Management isn't looking to buy new issues
- Possible slowdown in tech raises concerns, Hurtsellers says
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Voya Financial Inc.’s Christine Hurtsellers said she’s staying away from new issues of commercial mortgage-backed securities, echoing concerns from Federal Reserve officials and bond graders about loosening underwriting standards in the market.
“We don’t forecast a bubble per se, but definitely it’s starting to get frothy,” Hurtsellers, chief investment officer of fixed income at Voya Investment Management, said Wednesday at an event in New York, discussing the group’s outlook on markets. “It’s something we’re keeping an eye on. And therefore, we are not buying any, really, of the new issue deals but focusing more on older kind of seasoned deals that are available.”