Spreads on recent issue CMBS widened further on Monday, August 8, in the wake of Standard & Poor’s decision on Friday, August 5, to lower its triple-A ratings on U.S. Treasuries. Spreads recovered as the week progressed, but benchmark spreads on recent issue AAA-rated senior paper were still … [Read more...] about 8.12.11: CMBS Spread Continue to Widen
Archives for 2011
8.8.11: Markit to Introduce New Index to Hedge CMBS
Markit, a firm that provides credit default swap information and valuation services, is putting the finishing touches on a new total return swap index, dubbed TRX.2, designed to help CMBS lenders hedge their warehoused loans. With the recent volatility in CMBS spreads, securitization shops are … [Read more...] about 8.8.11: Markit to Introduce New Index to Hedge CMBS
8.4.11: SBA Aims to Avoid Shutdown as 7(a) Loans Approach Cap
With more than two months left in its fiscal year, the SBA has approved more than $16.4 billion in loans through its flagship 7(a) lending program. This record pace, however, has its downside. The 7(a) program is authorized to do only $17.5 billion in loans this fiscal year. Once that cap is … [Read more...] about 8.4.11: SBA Aims to Avoid Shutdown as 7(a) Loans Approach Cap
7.29.11: CMBS Spreads Blow Out; Borrowers Repriced
The CMBS market suffered a setback last week when bond spreads widened sharply again. According to Commercial Mortgage Alert, the spread on the benchmark triple-A class of an offering led by Wells Fargo and RBS priced on Thursday, July 21 at 170 basis points (bp) over swaps. That was 35 bp wider … [Read more...] about 7.29.11: CMBS Spreads Blow Out; Borrowers Repriced
7.28.11: S&P Suspends Ratings on New Issue CMBS 2.0 Deals
RBS reported that Standard and Poor’s Rating Services (S&P) announced on July 27 it will not currently assign ratings to U.S. conduit CMBS transactions, including the most recent $1.5-billion CMBS transaction offered by Goldman Sachs Group Inc. and Citigroup, Inc. that was scheduled to close on … [Read more...] about 7.28.11: S&P Suspends Ratings on New Issue CMBS 2.0 Deals
7.20.11: Inspector General Issues Scathing Audit Criticizing Banco Popular Regarding SBA Loan Underwriting
On July 13, SBA's Inspector General (IG) issued a scathing audit criticizing Banco Popular for its underwriting procedures for the Huntington Learning Centers (HLC) franchise. The IG wrote that the bank failed to properly analyze and underwrite applicant projections. This failure warrants the denial … [Read more...] about 7.20.11: Inspector General Issues Scathing Audit Criticizing Banco Popular Regarding SBA Loan Underwriting
7.15.11: ValueXpress iPad Free Raffle at Upcoming Trade Show in New Orleans, LA
After the terrific response to our iPad raffle at the Asian-American Hotel Owners Convention, ValueXpress plans to give away an iPad to another lucky winner at the upcoming Leuva Patidar Samaj of USA National Convention and Trade Show in New Orleans, LA at the Marriott Convention Center. The trade … [Read more...] about 7.15.11: ValueXpress iPad Free Raffle at Upcoming Trade Show in New Orleans, LA
7.14.11: Soft Market Confronts CMBS Offerings
According to Commercial Mortgage Alert, the latest weakening in the CMBS market makes it likely that a pair of $1.5-billion multi-borrower issues due to price the week of July 18 will wind up with senior spreads matching the widest levels seen this year. Goldman Sachs and Citigroup are leading one … [Read more...] about 7.14.11: Soft Market Confronts CMBS Offerings
7.6.11: ValueXpress Seeks Large High Leverage Hotel Loans
A key ValueXpress lending partner continues to seek high leverage hospitality loans. The bridge loan program is designed for transactions with loan amounts of at least $20 million for properties seeking shorter term funds to restabilize property cash flow after the recession, newer properties that … [Read more...] about 7.6.11: ValueXpress Seeks Large High Leverage Hotel Loans
6.30.11: Up-Front Costs Concern Small Balance Conduit Borrowers
Small balance ($2-$10 million) CMBS conduit borrowers no longer enjoy programs that feature fixed transaction costs for third-party reports and lender’s legal charges that are a relative bargain. Those programs, in effect prior to the 2008 CMBS conduit loan market meltdown, no longer exist. Today’s … [Read more...] about 6.30.11: Up-Front Costs Concern Small Balance Conduit Borrowers