In the wake of “Brexit," Great Britain’s decision to exit the European Union (EU), the 10-year U.S. treasury yield had its largest single-day decline on Friday, and then on Monday, the yield fell to 1.46%, approaching its all-time intra-day low of 1.39% recorded in July 2012. At that time in 2012, … [Read more...] about 6.27.16: 10-Year Treasury Nears All-Time Low…
Archives for 2016
6.24.16: …While the CMBS Market Awaits Upcoming Deal to Determine Brexit Impact
With Great Britain’s decision to exit the European Union (EU), the 10-year U.S. treasury yield had its largest single-day decline on Friday, and then on Monday, the yield fell to 1.46%, approaching its all-time intra-day low of 1.39% recorded in July 2012. Investors pushing Treasury yields lower … [Read more...] about 6.24.16: …While the CMBS Market Awaits Upcoming Deal to Determine Brexit Impact
6.15.16: Owners Scramble to Fill Big Box Retail Spaces
With the recent bankruptcy of Sports Authority and prior bankruptcies of Circuit City, CompUSA, Borders, and Linens and Things, all of which occupied stores generally 20,000-30,000 square feet, property owners are scrambling to re-lease these spaces to a smaller universe of prospects. Potential … [Read more...] about 6.15.16: Owners Scramble to Fill Big Box Retail Spaces
6.10.16: ValueXpress to Be Platinum Sponsor at the 2nd Annual National Alliance of Commercial Loan Brokers (NACLB) Conference & Expo
ValueXpress has committed to be a Platinum Sponsor for the 2nd Annual National Alliance of Commercial Loan Brokers (NACLB) Conference & Expo. The conference, which will be held at the Red Rock Casino in Las Vegas, Nevada, begins on Tuesday, October 4 with an opening cocktail reception and … [Read more...] about 6.10.16: ValueXpress to Be Platinum Sponsor at the 2nd Annual National Alliance of Commercial Loan Brokers (NACLB) Conference & Expo
6.6.16: Small Office and Furnished Office Suites a Bright Spot in the Office Sector
Small office space, both furnished and unfurnished, is performing well in the otherwise lackluster office market. Pioneered by Regus and newcomer wework, tenants can rent furnished or unfurnished office space for a day, week, month, or longer. The basic concept is that office building owners take … [Read more...] about 6.6.16: Small Office and Furnished Office Suites a Bright Spot in the Office Sector
6.1.16: REIT Valuations Soar
With interest rates trending down and investors scrambling to find investments that provide a reasonable amount of steady, secure income, demand for REIT stocks has risen dramatically as investors snap up shares of successful REITs. A good example is the shining star of the net lease sector, Realty … [Read more...] about 6.1.16: REIT Valuations Soar
5.27.16: CMBS Lenders Test Risk-Retention Structures
Effective December 24, 2016, CMBS issuers -- or B-piece buyers in their stead -- will be required to retain 5% of transactions for at least five years. CMBS issuers can retain a “vertical strip” encompassing 5% of every tranche, a “horizontal” 5% strip at the bottom of the capital stack, or an … [Read more...] about 5.27.16: CMBS Lenders Test Risk-Retention Structures
5.24.16: CMBS Spreads Decline Due to Lack of Supply
CMBS spreads continue to decline as the pace of new CMBS issuance falls well behind last year. U.S. CMBS volume as of late May was $28.5 billion versus $44.1 billion at the same time last year. Volume has fallen due to significant CMBS spread widening that reversed course in the beginning of March … [Read more...] about 5.24.16: CMBS Spreads Decline Due to Lack of Supply
5.17.16: deadmalls.com
When I first began to analyze CMBS bonds with my associate, Jim Brett, he discovered a website called deadmalls.com. There are a lot of mall loans in CMBS, and in 2008, when Jim and I began analyzing distressed CMBS for our affiliate, Country Bank, we were trying to get a handle on the difference … [Read more...] about 5.17.16: deadmalls.com
5.13.16: How Drugstore Loans Are Viewed in CMBS
A significant amount of drugstore loans are in CMBS, and they are dominated by stores leased to the top three U.S. drugstore chains: Walgreens, CVS and Rite-Aid. All of the drugstores are corporately operated (no franchises). Few, if any, drugstore buildings are owned by the three chains. The real … [Read more...] about 5.13.16: How Drugstore Loans Are Viewed in CMBS