CMBS conduit loan borrowers are finding calm waters as spreads on CMBS securities have been stable for most of 2017 to date. In addition, the 10-year Swap rate, the benchmark index for setting interest rates on CMBS conduit loans, has remained in a relatively narrow range of roughly 2.30%-2.60%. … [Read more...] about 4.25.17: CMBS Conduit Loan Rates Stable as CMBS Spreads Remain Steady
9.16.16: ValueXpress Arranges Groundbreaking CMBS Conduit Loan for Office Suite Portfolio
ValueXpress has arranged a $28-million CMBS conduit loan secured by a portfolio of eight office buildings that are specifically designed and leased as office suites. The transaction is by far the largest office suite transaction completed since the restart of the CMBS conduit loan market in 2010. … [Read more...] about 9.16.16: ValueXpress Arranges Groundbreaking CMBS Conduit Loan for Office Suite Portfolio
4.1.16: CMBS Conduit Loan Spreads Rally (Again)
CMBS spreads tightened further this week as two CMBS issues priced at levels tighter than a CMBS offering led by Wells Fargo that priced on March 18. The benchmark AAA-rated super senior CMBS bonds from the most recent $818-million offering from Deutsche Bank and JPMorgan priced on Thursday at 129 … [Read more...] about 4.1.16: CMBS Conduit Loan Spreads Rally (Again)
3.16.16: CMBS Conduit Loan Spreads Rally
After an extended period of widening spreads on CMBS bonds, spreads tightened significantly this past week. The tightening provided relief to market participants that have seen CMBS conduit lenders pull back from originating new CMBS conduit loans until the market for CMBS securities improved. The … [Read more...] about 3.16.16: CMBS Conduit Loan Spreads Rally
6.26.15: The Power of Unrestricted Cash Out and Non-Recourse Keeps CMBS Conduit Lending Active
While the recent rise in the Swap rate indexes used to set interest rates for CMBS conduit loans has slowed rate-sensitive borrowers from closing loans, the rise has not deterred borrowers who use the CMBS conduit loan as a tool to extract excess equity in their real estate assets. “Whenever I … [Read more...] about 6.26.15: The Power of Unrestricted Cash Out and Non-Recourse Keeps CMBS Conduit Lending Active
4.13.15: Is Credit Quality Eroding for CMBS Conduit Loans
Last March we reported on deteriorating credit quality based on data provided by the rating agency Kroll. At that time, Kroll reported gradual deterioration over the prior year in underwriting standards for the 20 largest loans in Kroll-rated transactions, particularly at the lower end of the range. … [Read more...] about 4.13.15: Is Credit Quality Eroding for CMBS Conduit Loans
4.3.15: Franchise Expirations Becoming a Headache for CMBS Conduit Hotel Loans
The buyers of the most risky CMBS securities, sometime referred to as the “b-buyers,” have laid down some pretty strict guidelines for the remaining minimum term for franchise agreements on hotels to be eligible for CMBS conduit loans. As the buyers of the most risky CMBS securities, the b-buyers … [Read more...] about 4.3.15: Franchise Expirations Becoming a Headache for CMBS Conduit Hotel Loans
3.2.15: ValueXpress Establishes CMBS Conduit Relationship in Canada
“I was recently asked by one of my Commercial Capital Training Group (CCTG) students whether we provided CMBS conduit loans in Canada,” said Michael D. Sneden, Executive Vice President at ValueXpress. “I said we did prior to the market crash, but we haven’t done any since.” That conversation spurred … [Read more...] about 3.2.15: ValueXpress Establishes CMBS Conduit Relationship in Canada
9.29.14: Franchise Expirations an Issue for CMBS Conduit Loans
The buyers of the most risky bonds in the CMBS structure (commonly referred to as the b-buyer) have the right to review all the loans in a CMBS pool in which they buy the bonds in the riskiest position. As part of the review, the b-buyer has the opportunity to “kick-out” of the pool or request price … [Read more...] about 9.29.14: Franchise Expirations an Issue for CMBS Conduit Loans
7.10.14: CMBS Conduit Loan Originations Explode on Lower Rates
“Commercial Mortgage Alert” recently reported that CMBS issuance dropped 8% in the first half of 2014 versus a year ago. The decline was blamed on competition from the community banking system, which is now hungry for commercial real estate loans after cleaning up its balance sheets after the … [Read more...] about 7.10.14: CMBS Conduit Loan Originations Explode on Lower Rates