Lower underwriting standards and competition for CMBS conduit loan are helping borrowers in many ways to lower transaction costs. Here are some interesting trends. - Fixed-fee CMBS conduit loan programs (see our 6.13.14 news comment "ValueXpress to Offer Fixed-Fee CMBS Program") feature streamlined … [Read more...] about 6.4.14: Relaxed CMBS Conduit Underwriting Benefits Borrowers
5.30.14: 10-Year Treasury Falls Further, Confounding Experts
The yield on the benchmark 10-year Treasury note fell further this week, closing at 2.46% on Friday after closing at 2.44% on Wednesday, the lowest closing yield since July 2013. The move caught just about everyone by surprise. I sure can’t figure it out, but here is what one of our investment … [Read more...] about 5.30.14: 10-Year Treasury Falls Further, Confounding Experts
5.28.14: 9th Annual SAHOA Golf Tournament and Trade Show a Big Success
On Wednesday, May 28, 2014, ValueXpress was among the sponsors of the 9th Annual San Antonio Hotel Owners Association (SAHOA) Golf Tournament at the Hyatt Hill Country Golf Club in San Antonio, Texas. About 100 golfers took to the links under sunny skies and a delightful breeze to play in a scramble … [Read more...] about 5.28.14: 9th Annual SAHOA Golf Tournament and Trade Show a Big Success
5.21.14: Dicier CMBS Conduit Loans Result in More Subordination
In response to eroding collateral quality, rating agencies recently have been boosting credit-enhancement requirements -- with the result that subordination levels on junior triple-A CMBS have moved closer to the standard 30% threshold for super-senior AAA-rated CMBS. On May 21st, Deutsche Bank and … [Read more...] about 5.21.14: Dicier CMBS Conduit Loans Result in More Subordination
5.16.14: 10-Year Treasury Yield Hits 9-Month Low; Swaps Follow
The yield on the benchmark 10-year Treasury note fell on Thursday, May 15, 2014 to close at 2.50%, a low not seen since last October. Intraday, the note touched 2.47%. Although investors have been expecting rates to rise, the bond market is not cooperating, confounding economists. Weak economic … [Read more...] about 5.16.14: 10-Year Treasury Yield Hits 9-Month Low; Swaps Follow
5.12.14: Non-Recourse Construction Loans Are Back!
In another sign of real estate investors looking for opportunities for investment, financial services companies are beginning to offer non-recourse construction/rehabilitation loans for typical CMBS-quality assets. CMBS-quality assets are preferred as the expected exit strategy is a fixed-rate CMBS … [Read more...] about 5.12.14: Non-Recourse Construction Loans Are Back!
5.6.14: Malls Struggle When Anchors Leave
Shopping malls, already negatively impacted by internet retailing (see our 2.18.14 post “More Thoughts on the Future of Retail”), often find themselves in a serious downward spiral when anchor tenants close their doors. Anchor tenants are traditionally defined as national retail chains that lease … [Read more...] about 5.6.14: Malls Struggle When Anchors Leave
5.2.14: Three New CMBS Deals Warmly Received by Investors
After a lull in new CMBS issuance, the market easily absorbed three multi-borrower offerings this week. Senior classes priced in line with dealer guidance, while junior classes priced at levels tighter than seen in the last CMBS issue at the end of March. A total of approximately $3.9 billion in … [Read more...] about 5.2.14: Three New CMBS Deals Warmly Received by Investors
4.30.14: Swap Rates Decline on Poor GDP Report
Swap rates, an important financial index that is used to set interest rates on CMBS conduit loans, fell this week after the government reported annualized Gross Domestic Product (GDP) growth of a mere 0.01% in the first quarter of 2014, according to the “advance” estimate released by the Bureau of … [Read more...] about 4.30.14: Swap Rates Decline on Poor GDP Report
AAHOA Alert! 4.30.14: CMBS Conduit Loan Rates for Hotels Fall Below 5%
Lender competition for CMBS conduit loans for hotels, particularly limited-service hotels owned by AAHOA members, is contributing to rapidly declining interest rates for borrowers. In addition, small balance borrowers ($3 million-$10 million) are enjoying low interest rates that were previously … [Read more...] about AAHOA Alert! 4.30.14: CMBS Conduit Loan Rates for Hotels Fall Below 5%
