Weighted-average loan coupons continue to decline. The recent Deutsche Bank/Cantor Fitzgerald deal set a new post-crash low with a weighted-average coupon of 4.63%, continuing a trend over the past few months of declining average coupons. The chart below shows the weighted-average coupons for recent CMBS offerings.
Issue Date | Issuer | Deal Size (mm) | Weighted Coupon |
---|---|---|---|
6/28/12 | UBS/Barclays | $1,216.1 | 4.980% |
7/13/12 | MS/BofA | $1,352.2 | 4.738% |
7/20/12 | Wells Fargo/RBS | $1,301.0 | 4.920% |
8/8/12 | Deutsche/Cantor | $1,321.2 | 4.931% |
9/10/12 | Citigroup | $1,040.2 | 4.954% |
9/14/12 | UBS/Barclays | $1,082.1 | 4.985% |
9/19/12 | Wells Fargo/Ladder | $1,277.2 | 4.807% |
9/27/12 | JPMorgan | $1,136.6 | 4.701% |
10/3/12 | Deutsche/Cantor | $1,251.4 | 4.833% |
10/3/12 | MS/BofA | $1,123.5 | 4.693% |
10/16/12 | Deutsche/Cantor | $1,111.0 | 4.633% |
“These results are impressive as CMBS conduit loans become more competitive with insurance company rates on commercial properties and Fannie Mae/Freddie Mac rates on multifamily properties,” commented Jim Brett, underwriting chief at ValueXpress. “We recently secured a CMBS conduit multifamily loan quote on a $10-million student housing transaction in the 4.25% area that was within 25 basis points of a 75% LTV Fannie Mae/Freddie Mac quote. With the tendency for more-aggressive appraisal outcomes in CMBS, the borrower is seriously considering the conduit deal over the Fannie/Freddie deal.”