Archives for 2012

CMBS bond spreads (and hence spreads to borrowers on their loans) and the Swap rate (the index used to set CMBS conduit loan rates) both fell as 2012 progressed; by year-end, the combination resulted in the lowest CMBS conduit loan rates ever recorded. In January 2012, Goldman Sachs priced the only … [Read more...] about 12.28.12: CMBS Prognosis for 2013

Secondary market premiums on the sale of SBA 7(a) loan guarantees reached record highs in late December 2012 based on dealer pricing indications. The chart below shows the monthly trend in premium pricing during 2012: 2012 Premium* Dec 117.50 Nov 117.00 Oct 117.00 Sept 116.00 Aug 116.00 … [Read more...] about 12.26.12: SBA 7(a) Premiums Reach the Stratosphere

ValueXpress has been arranging CMBS conduit loans for its clients for over 15 years. The typical client is a small balance borrower ($5-$10 million), and many do not have much or any experience in the diligence process (read: lots and lots of documents) required to close a CMBS conduit loan. … [Read more...] about 12.24.12: Creating Efficiency in the CMBS Loan Diligence Process

In support of the strong demand for CMBS securities, it was reported that insurance companies were active buyers of AAA-rated senior CMBS with 30% subordination (generally classes A1-A3 and A-SB), and were big buyers of subordinate CMBS (classes AS, B and C), which generally provided subordination … [Read more...] about 12.18.12: Insurance Companies Grab Large Blocks of Subordinate CMBS

Commercial Mortgage Alert reports that a big fourth quarter has lifted U.S. commercial MBS volume for 2012 above $48 billion — and strong issuance will continue in the first quarter. CMBS activity has soared almost 50% in 2012 from $32.7 billion in 2011. The increase was bolstered by close to $18 … [Read more...] about 12.14.12: CMBS Issuance Poised to Surge in First Quarter of 2013

Many CMBS borrowers are asking why CMBS conduit loan spreads are relatively high for 65%-70% LTV hospitality loans. Part of the answer can be found in the way the buyers of subordinate CMBS (often referred to as b-piece buyers) look at the pricing and risks of hotel loans. As a refresher, the … [Read more...] about 12.10.12: B-Piece Buyers Forcing Issuers to Pay Up for Hotel Loans

On Friday, November 29, ValueXpress participated in the 2012 AAHOA Washington District Regional Conference and Trade Show at the Hilton Crystal City Hotel in Arlington, Virginia. The show featured the Asian-American Hotel Owners Association’s (AAHOA) current President Alkesh Patel and Washington … [Read more...] about 11.29.12: ValueXpress Exhibits at 2012 AAHOA Washington District Regional Conference & Trade Show

While it seemed that the rally in CMBS securities would never end, the music stopped last week when dealers widened the price talk on a $1.4-billion conduit offering that was in the market. The offering, which priced on Friday, November 23, is backed by loans supplied by Jefferies LoanCore, Goldman … [Read more...] about 11.26.12: CMBS Spreads Widen Amid Supply and Fiscal Cliff Concerns

New York investor David Lichtenstein’s bet on four small-town malls didn’t pan out, leading him to forfeit the properties to his mortgage holders in 2009. It now appears the deal also was a big loser for investors in the malls’ $73.9-million securitized mortgage. The last of the four malls recently … [Read more...] about 11.21.12: Small Town Maul (Reported by the Wall Street Journal)