The winner is commercial banks, which held $1.67 billion in commercial real estate debt at year-end 2014, according to data from the Federal Reserve Board. The amount of commercial real estate debt held by banks represents 49.5% of the $3.38 billion of total outstanding loans. CMBS is a distant … [Read more...] about 4.28.15: Who Holds the Most Commercial Loans?
Archives for April 2015
General Electric (GE) is selling most of the real estate and other remaining assets of its GE Capital unit, the financial arm that was once the largest part of the company. The company expects to get $26.5 billion from various buyers, including Blackstone Group (BX) and Wells Fargo (WFC). But as an … [Read more...] about 4.21.15: GE Selling Most of GE Capital to Blackstone and Wells Fargo
The Federal Housing Finance Agency (FHFA) has set a cap of $30 billion each in multifamily loan purchases for Fannie Mae and Freddie Mac for 2015. With both agencies off to a great start through the first quarter of 2015, the government-sponsored agencies could reach their respective caps well … [Read more...] about 4.17.15: Will Fannie/Freddie Multifamily Loan Limits Create Opportunity for CMBS
Last March we reported on deteriorating credit quality based on data provided by the rating agency Kroll. At that time, Kroll reported gradual deterioration over the prior year in underwriting standards for the 20 largest loans in Kroll-rated transactions, particularly at the lower end of the range. … [Read more...] about 4.13.15: Is Credit Quality Eroding for CMBS Conduit Loans
It has been a while since we reported on the sale of SBA 7(a) loan guarantees, primarily because pricing has not moved much over the past year. After post-crash premiums peaked at 118.75 in February 2013, pricing gradually declined during the balance of 2013. Then, throughout 2014, secondary market … [Read more...] about 4.6.15: SBA Guarantee Premiums Remain at Attractive Levels
The buyers of the most risky CMBS securities, sometime referred to as the “b-buyers,” have laid down some pretty strict guidelines for the remaining minimum term for franchise agreements on hotels to be eligible for CMBS conduit loans. As the buyers of the most risky CMBS securities, the b-buyers … [Read more...] about 4.3.15: Franchise Expirations Becoming a Headache for CMBS Conduit Hotel Loans
On Thursday, April 2, the 10-year swap rate once again fell below 2.0%, after Labor Department data showed U.S. employers added the fewest jobs in March in more than a year. The rise of 126,000 jobs was well below expectations for a gain of 245,000 forecast by economists. Prior to Thursday, the … [Read more...] about 4.2.15: 10-Year Swap Rate Falls Below 2.0%, Again