Kroll Bond Rating Agency (KBRA) released this month’s CMBS Trend Watch. In the August edition, we note that $4.2 billion of private-label issuance priced, bringing the year-to-date total to $37.3 billion, down 45% year over year. We expect September to be a busy month in terms of deal issuance, as … [Read more...] about 8.31.16: Kroll Releases August CMBS Trend Watch
Archives for August 2016
8.25.16: Sears/Kmart Continue to Falter
Sears and Kmart continue to struggle in a retail environment in which only “best in class” retailers are able to grow sales and profits. Sales have declined for the last ten quarters, including a 7.1% decline in the fourth quarter of 2015 and an 8% decline in the first quarter of 2016. Sears stores … [Read more...] about 8.25.16: Sears/Kmart Continue to Falter
8.19.16: Dennis Suh Joins ValueXpress
Dennis Suh has joined ValueXpress to serve as a vice president for the commercial loan originations group. He will focus on originating CMBS conduit loans and agency loans in the broader national markets. Dennis comes with a background in originating fixed-rate conduit loans in core markets in the … [Read more...] about 8.19.16: Dennis Suh Joins ValueXpress
8.16.16: CMBS Pipeline Strong for Third and Fourth Quarters
Lower interest rates and stable markets are leading to predictions for strong CMBS conduit loan originations for the third and fourth quarters of 2016. The increasing velocity of CMBS loan closings is refreshing for CMBS professionals after poor first and second quarters in terms of low volume and … [Read more...] about 8.16.16: CMBS Pipeline Strong for Third and Fourth Quarters
8.10.16: Demand for Industrial Space in New Jersey Continues to Soar
In May 2016, CBRE Group, Inc. (CBRE) reported that developers saw a need for large industrial buildings in New Jersey and responded by developing speculative (not pre-leased) projects. While speculative development is very risky, tenants responded by gobbling up the space at a rapid rate. Demand … [Read more...] about 8.10.16: Demand for Industrial Space in New Jersey Continues to Soar
8.5.16: “Risk Retention” CMBS Deal Prices at Tight Spreads
A new issue CMBS conduit transaction priced on Thursday, August 4 at the tightest spreads since summer 2015. The issuers, Wells Fargo, Bank of America and Morgan Stanley, priced the long-term super-senior bonds from the $871-million offering at 94 basis points (bp) over swaps. This was significantly … [Read more...] about 8.5.16: “Risk Retention” CMBS Deal Prices at Tight Spreads
8.4.16: Meanwhile, Tight CMBS Spreads and Low Treasury Yields Provide Great Rates for Borrowers
After long-term super-senior CMBS bonds peaked at 173 basis points (bp) over swaps in May 2016, spreads have steadily declined to 94 bp when Wells Fargo, Bank of America and Morgan Stanley priced the long-term super-senior bonds from the $871-million offering on Thursday, August 4. Rates to … [Read more...] about 8.4.16: Meanwhile, Tight CMBS Spreads and Low Treasury Yields Provide Great Rates for Borrowers
8.1.16: Trepp: CMBS Delinquency Rate Moves Higher Again in July
CMBS loan delinquency rose in July to 4.76%, up 16 basis points (bp) from June, according to Trepp. The July delinquency rate is 61 bp above its multiyear low of 4.15% recorded in February 2016. The delinquency rate was negatively impacted by loans unable to pay off at maturity, thereby being … [Read more...] about 8.1.16: Trepp: CMBS Delinquency Rate Moves Higher Again in July