According to research by CS First Boston, one concern about the increasing rate of CMBS issuance is that the quality of underwriting has deteriorated quickly, as originators stretch in terms of credit quality, in order to increase the volume of loans coming to the market. With this in mind, CS First … [Read more...] about 9.28.12: A Quick Look at New Issue CMBS Loan Underwriting
Archives for September 2012
9.21.12: Fed Move Spurs Pickup in CMBS Rally
CMBS spreads fell to post-crash lows after the long-term, super-senior bonds from a $1.3-billion multi-borrower offering by Wells Fargo, Ladder Capital and RBS priced at 85 basis points (bp) over swaps on Wednesday, September 19, 2012, according to Commercial Mortgage Alert. This was down from the … [Read more...] about 9.21.12: Fed Move Spurs Pickup in CMBS Rally
9.19.12: Tightening CMBS Spreads a Bonanza for Borrowers – Part II
In July I wrote that CMBS spread tightening has resulted in a very favorable rate environment for CMBS conduit borrowers compared with just a few months earlier. Well, based on the recent CMBS issues, borrowing rates are poised to drop further in upcoming weeks as the results of recent CMBS issues … [Read more...] about 9.19.12: Tightening CMBS Spreads a Bonanza for Borrowers – Part II
9.12.12: Small Business Capital and the Mark Feathers Saga…Cont’d
It appears that I was off base when I suggested the Securities Exchange Commission (SEC) might not understand the business model for Small Business Capital. In July, I wrote, “If you understand the structure of SBA loans, the two SBC funds conceptually make sense. The SEC alleges the returns on the … [Read more...] about 9.12.12: Small Business Capital and the Mark Feathers Saga…Cont’d
9.7.12: ValueXpress Welcomes Ken Stevenson
Ken Stevenson, a 20-year veteran in commercial real estate lending, has joined ValueXpress, effective September 1. Stevenson will be primarily responsible for commercial loan originations in the western United States. “Ken brings an outstanding breadth of experience to the ValueXpress team,” … [Read more...] about 9.7.12: ValueXpress Welcomes Ken Stevenson
9.2.12: Delinquency Rate Falls 21 BP in August – Largest Decline Since November 2011
The long-anticipated leveling off of the U.S. CMBS delinquency rate became a reality in August. Over the last few months, we predicted that the Trepp CMBS Delinquency Rate would hit a high in early to mid-summer then decelerate in the second half of the year. That prognostication came to fruition in … [Read more...] about 9.2.12: Delinquency Rate Falls 21 BP in August – Largest Decline Since November 2011
