A flood of CMBS deals slated to price before year-end may result in lower CMBS bond prices if investors do not have the appetite to buy all of the supply. Many CMBS buyers, including insurance companies, are provided annual allocations for fixed-income investments such as CMBS, and once those … [Read more...] about 11.28.14: Flood of CMBS Deals May Put Downward Pressure on Pricing
Archives for November 2014
On November 23, UBS, Deutsche Bank, Jeffries, Cantor Fitzgerald, KeyBank and Pillar priced the benchmark class of a $1.275-billion multi-borrower CMBS conduit offering at significantly wider spreads than the previous offering on November 18 from Wells Fargo, RBS, Rialto Capital and other loan … [Read more...] about 11.25.14: Spreads Widen on Recent CMBS Offering
Moody’s recently reported further deterioration of CMBS conduit loan underwriting using its internal loan-to-value (LTV) metrics. The experts at Moody’s Investors Service track the principal amount of CMBS loans compared with the property’s value based on applying an appropriate capitalization rate … [Read more...] about 11.19.14: Moody’s Warns on CMBS Loan Underwriting
“Our mission at ValueXpress, particularly for first-time CMBS conduit loan borrowers, is to make a complex loan process as painless as possible,” explained Michael D. Sneden, Executive Vice President at ValueXpress. “This enables borrowers to keep up with the fast-paced underwriting and closing … [Read more...] about 11.14.14: On the Road Again … This Time to Lubbock, TX!
Freddie Mac, a government-sponsored enterprise (GSE) that buys mortgages for pooling and sale as mortgage-backed securities has announced a new small balance multifamily loan acquisition program. The program, dubbed Small Balance Loan (SBL), kicked off during Freddie Mac’s seller/servicer conference … [Read more...] about 11.11.14: Freddie Mac Announces Small Balance Multifamily Loan Program
“I have wondered many times why assisted living properties can’t seem to make it into CMBS transactions,” noted Jim Brett, head of Underwriting at ValueXpress. “It seems the risk profile is similar to hotels, so applying underwriting standards somewhat more conservative than hotels, perhaps 65% LTV … [Read more...] about 11.4.14: Limited Amount of Assisted Living Loans Found in CMBS 2.0