New risk weight rules, known as Basil III, are having a significant negative impact on banks’ required capital allocation for investment in CMBS securities rated below AAA. Previous to impending Basil III capital rules, CMBS securities rated from AAA to AA- had a 20% risk weighting. When Basil III … [Read more...] about 5.29.15: New Risk Weight Rules Hurt Banks Investing in CMBS
Archives for May 2015
The CMBS delinquency rate for U.S. commercial real estate loans in CMBS declined a significant 0.17% from April to 5.40% in May, according to Trepp. In the last 25 months, the delinquency rate has fallen 22 times and is now 87 basis points (bp) lower than the year-ago level. The May decrease is the … [Read more...] about 5.26.15: CMBS Delinquencies Continue to Decline
The debate on the potential impact of rising interest rates on REIT stocks continues. Since a Real Estate Investment Trust (REIT) must pay out at least 90% of its taxable income as a dividend to investors, REIT stocks are relatively high-yielding investments. Investors are debating the sensitivity … [Read more...] about 5.22.15: Are REIT Stocks Impacted by Increased Interest Rates?
ValueXpress was a sponsor of the 12th Annual Bhakta Open Golf Tournament that took place on Saturday, May 8, 2015 and Sunday, May 9, 2015. This year's Bhakta Open was held in Palm Springs, California at the breathtaking La Quinta Resort & Club – PGA West TPC Stadium Course and PGA WEST Nicklaus … [Read more...] about 5.15.15: ValueXpress Sponsors 12th Annual Bhakta Open
With an expected increase in CMBS issuance for the next six weeks, CMBS volume appears to be on track to hit $56 billion for the first six months of 2015, up 38% from $40.6 billion recorded in the first half of 2014. That would keep full-year volume on pace to reach the $125 billion forecast by … [Read more...] about 5.11.15: Mid-Year CMBS Issuance on Track
Going-in capitalization rates compressed nationally across all product types and classes in 2014, according to Integra Realty Resource. This national trend was strongest with respect to Class A Industrial product as well as Class A CBD Office assets. As these assets classes’ capitalization rates … [Read more...] about 5.6.15: Cap Rates Continue to Compress
For more than two years now, Michael D, Sneden, Executive Vice President at ValueXpress, has been training Commercial Capital Training Group (CCTG) students how to successfully originate CMBS conduit loans. One of the most successful tools the new grads are using to close loans is leads provided by … [Read more...] about 5.1.15: Maturing CMBS Loan Leads Effective Tool for CCTG Grads