The USDA B&I loan guaranty program, historically underfunded and a difficult program to actually close loans through, is gaining renewed popularity under President Obama’s American Recovery and Reinvestment Act of 2009 (“Recovery Act”). With Recovery Act funding, the USDA can guarantee up to 90% … [Read more...] about 4.29.10: USDA Business and Industry (B&I) Loan Program Gains Popularity
Archives for April 2010
Anyone who has originated a CMBS conduit loan owes it to himself to read The Big Short, by Michael Lewis and The Greatest Trade Ever, by Gregory Zuckerman. These two books chronicle the financial meltdown that occurred in 2008 resulting from the collapse of residential mortgage-backed securities … [Read more...] about 4.27.10: Any Parallels to CMBS with The Greatest Trade Ever and The Big Short?
According to Commercial Mortgage Alert, Morgan Stanley is getting back in the game. The bank, which was the dominant bookrunner of commercial MBS transactions through much of the 2000s, disbanded its real estate origination group in 2008 after the market crashed. The buzz is that Morgan Stanley has … [Read more...] about 4.23.10: Morgan Stanley to Resume CMBS Lending
On April 15, spreads on senior CMBS fell 25-30 basis points (bp) as an ongoing rally in CMBS spreads and prices accelerated. CMBS prices (as measured by the GSMS 2007-GG10 super senior A4 bond class, which is considered the industry benchmark) tightened to 295 bp over swaps from 325 bp. The dollar … [Read more...] about 4.16.10: CMBS Rally Accelerates
U.S. Senator Mary L. Landrieu (D, LA), Chair of the Senate Committee on Small Business and Entrepreneurship, commented on the passage of the extension of several American Recovery and Reinvestment Act (ARRA) provisions that were set to expire on April 30, 2010. The extension provided $80 million to … [Read more...] about 4.14.10: SBA Fee Waiver Extended Once Again
The first multi-borrower commercial MBS offering since mid-2008 was priced on Friday, April 9, as spreads in the secondary market continued to tighten. The $309.7-million offering by RBS and Natixis priced at spreads that were in line with or tighter than initial price talk. The largest tranche -- … [Read more...] about 4.9.10: RBS Deal Fares Well
In one of the most difficult transactions ever completed by the firm, ValueXpress was able to save its client more than $6 million by providing a $2.5-million loan to pay off $7.4 million in debt obligations secured by 8 KFC (Kentucky Fried Chicken) restaurants located in Ohio and Pennsylvania. … [Read more...] about 4.1.10: ValueXpress Provides $2.5-Million Loan in Conjunction with DPO That Saves Borrower over $6 Million