AI CMBS Forecast


Bullish Case: If rate cuts happen as anticipated, CMBS prices could stabilize or appreciate due to lower borrowing costs, which boosts investor confidence and demand.


Bearish Case: High office vacancies and economic uncertainty may exacerbate defaults in subordinate debt, pushing CMBS prices lower as market sentiment deteriorates.


Potential Outcomes:

1. Rate cuts uplift prices (40%);

2. Continued office market struggles lead to defaults (30%);

3. Stable demand for CMBS boosts prices (20%);

4. Geopolitical unrest causes volatility (10%).


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September 24, 2024


iShares CMBS Forecast

CMBS      iShares CMBS











Correlated Assets

Assets that tend to move strongly with CMBS



BURL Forecast + Options Trading Strategies   BURL  Burlington Stores (0.94)


HYD Forecast + Options Trading Strategies   HYD  VanEck ETF Trust - VanEck High Yield Muni (0.92)


IBB Forecast + Options Trading Strategies   IBB  BlackRock Institutional Trust Company N.A. - iShares Biotechnology (0.92)


CHKP Forecast + Options Trading Strategies   CHKP  Check Point Software Technolgies (0.9)


EXR Forecast + Options Trading Strategies   EXR  Extra Space Storage (0.9)



Uncorrelated Assets

Assets with little price relationship to CMBS



LIVN Forecast + Options Trading Strategies   LIVN  LivaNova (-0.0)


HSIC Forecast + Options Trading Strategies   HSIC  Henry Schein (0.0)


GILD Forecast + Options Trading Strategies   GILD  Gilead Sciences (-0.0)


BBAI Forecast + Options Trading Strategies   BBAI  BigBear.ai (0.0)


REI Forecast + Options Trading Strategies   REI  Ring Energy (0.0)



Anticorrelated Assets

Assets that tend to move strongly against CMBS



SDOW Forecast + Options Trading Strategies   SDOW  ProShares UltraPro Short Dow30 (-0.86)


FNGR Forecast + Options Trading Strategies   FNGR  FingerMotion (-0.87)


LABD Forecast + Options Trading Strategies   LABD  Direxion Daily S&P Biotech Bear 3X Shares (-0.9)


SRS Forecast + Options Trading Strategies   SRS  ProShares UltraShort Real Estate (-0.91)


DRV Forecast + Options Trading Strategies   DRV  Direxion Daily Real Estate Bear 3X Shares (-0.91)





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