Michael D. Sneden, Executive Vice President of ValueXpress, will be representing the firm at the Mortgage Bankers Association Commercial Real Estate Finance (CREF)/Multifamily Housing Convention and Expo in San Diego, CA February 3-6, 2013. The convention is expected to attract over 2,500 commercial … [Read more...] about 1.15.13: Wanna Meet at the MBA in San Diego, CA?

The CMBS bond market began 2013 on a high note: Strong demand for the first conduit offering of the year pushed spreads to a post-crash low. The benchmark super-senior class of a $1.4-billion conduit offering by Morgan Stanley and Bank of America (BoA) priced at 72 basis points (bp) over swaps on … [Read more...] about 1.11.13: CMBS Begins 2013 with a Bang

CMBS buyers returned to the market in early 2014 to gobble up the year's first issue, a $1.4-billion offering by Deutsche Bank, Nataxis, Cantor Fitzgerald and Liberty Island. The long-term, super-senior bonds priced at 87 basis points (bp) over swaps, down 3 bp from initial price guidance and 8 bp … [Read more...] about 1.9.13: Buyers Grab CMBS from Year’s First Issue

Four Commercial Real Estate (CRE) Collateralized Debt Obligations (CDOs) totaling $1 billion were issued in the fourth quarter of 2012, suggesting that the new issue market has re-opened. These deals fill an important void in commercial real estate finance for transactions that cannot be included in … [Read more...] about 1.8.13: Commercial Real Estate CDOs Make a Comeback

CMBS bond spreads (and hence spreads to borrowers on their loans) and the Swap rate (the index used to set CMBS conduit loan rates) both fell as 2012 progressed; by year-end, the combination resulted in the lowest CMBS conduit loan rates ever recorded. In January 2012, Goldman Sachs priced the only … [Read more...] about 12.28.12: CMBS Prognosis for 2013

Secondary market premiums on the sale of SBA 7(a) loan guarantees reached record highs in late December 2012 based on dealer pricing indications. The chart below shows the monthly trend in premium pricing during 2012: 2012 Premium* Dec 117.50 Nov 117.00 Oct 117.00 Sept 116.00 Aug 116.00 … [Read more...] about 12.26.12: SBA 7(a) Premiums Reach the Stratosphere

ValueXpress has been arranging CMBS conduit loans for its clients for over 15 years. The typical client is a small balance borrower ($5-$10 million), and many do not have much or any experience in the diligence process (read: lots and lots of documents) required to close a CMBS conduit loan. … [Read more...] about 12.24.12: Creating Efficiency in the CMBS Loan Diligence Process

In support of the strong demand for CMBS securities, it was reported that insurance companies were active buyers of AAA-rated senior CMBS with 30% subordination (generally classes A1-A3 and A-SB), and were big buyers of subordinate CMBS (classes AS, B and C), which generally provided subordination … [Read more...] about 12.18.12: Insurance Companies Grab Large Blocks of Subordinate CMBS

Commercial Mortgage Alert reports that a big fourth quarter has lifted U.S. commercial MBS volume for 2012 above $48 billion — and strong issuance will continue in the first quarter. CMBS activity has soared almost 50% in 2012 from $32.7 billion in 2011. The increase was bolstered by close to $18 … [Read more...] about 12.14.12: CMBS Issuance Poised to Surge in First Quarter of 2013

Many CMBS borrowers are asking why CMBS conduit loan spreads are relatively high for 65%-70% LTV hospitality loans. Part of the answer can be found in the way the buyers of subordinate CMBS (often referred to as b-piece buyers) look at the pricing and risks of hotel loans. As a refresher, the … [Read more...] about 12.10.12: B-Piece Buyers Forcing Issuers to Pay Up for Hotel Loans