In its February CMBS Trend Watch, Kroll Bond Rating Agency (KBRA) notes that 2017 continued its sluggish start with $3.8 billion of CMBS securities priced in February. Year-to-date volume is down 48.5% from a year earlier and is the lowest it has been since 2012. However, KBRA notes that based on … [Read more...] about 2.28.17: Kroll Releases February CMBS Trend Watch
Archives for February 2017
Michael D. Sneden, Executive Vice President, and Dennis Suh, Vice President, will be representing ValueXpress at the Mortgage Bankers Association Commercial Real Estate Finance (CREF)/Multifamily Housing Convention & Expo at the Manchester Grand Hyatt in San Diego, California, February 19-22, … [Read more...] about 2.17.17: Michael Sneden and Dennis Suh Represent ValueXpress at the MBA Conference in San Diego, CA
The 2017 MBA will be ground zero for opinions and information on important issues that the CMBS industry is currently working through. At the forefront is structuring CMBS deals for the required 5% risk retention as there is still no consensus on the best execution – the vertical strip, horizontal … [Read more...] about 2.15.17: Hot Topics for the MBA Conference in San Diego, CA
The “wall of maturities” refers to the avalanche of ten-year securitized loans that were originated at the peak of the last cycle, in 2006-2007. The last batch of those mortgages comes due in 2017, and conduit lenders had assumed that many of the borrowers would provide a steady supply of lending … [Read more...] about 2.8.17: What Happened to the Wall of CMBS Maturities?
Two CMBS transactions recently priced with long-term super-senior AAA-rated bonds pricing at levels not seen since mid-2015. The first deal, a $1.3-billion offering by Citigroup and Deutsche Bank, priced the super-senior CMBS at 90 basis points (bp) over swaps, down 24 bp from the average of … [Read more...] about 2.3.17: CMBS Spreads Tighten Amid Limited Supply …
CMBS market participants are breathing a sigh of relief as fully-complaint risk retention deals are being well received in the market. Whereas industry pros were concerned that the effects of the rules would make CMBS loans uncompetitive, the reverse is occurring, at least right now. The most recent … [Read more...] about 2.1.17: And Risk Retention May Be Helping, Not Hurting Pricing …