The CMBS delinquency rate for U.S. commercial real estate loans in CMBS declined a significant 0.17% from April to 5.40% in May, according to Trepp. In the last 25 months, the delinquency rate has fallen 22 times and is now 87 basis points (bp) lower than the year-ago level. The May decrease is the … [Read more...] about 5.26.15: CMBS Delinquencies Continue to Decline
5.6.15: Cap Rates Continue to Compress
Going-in capitalization rates compressed nationally across all product types and classes in 2014, according to Integra Realty Resource. This national trend was strongest with respect to Class A Industrial product as well as Class A CBD Office assets. As these assets classes’ capitalization rates … [Read more...] about 5.6.15: Cap Rates Continue to Compress
2.3.15: Fixed-Fee CMBS Loan Programs Continue to Expand
“A colleague of mine for over 15 years announced the formal launch of a new fixed-fee CMBS conduit loan origination platform at the 2015 MBA Commercial Real Estate Finance Convention (CREF) held in San Diego, California,” commented Michael D. Sneden, Executive Vice President of ValueXpress. “I was … [Read more...] about 2.3.15: Fixed-Fee CMBS Loan Programs Continue to Expand
6.27.14: Super-Senior CMBS Spreads Continue to Decline
On June 19, Deutsche Bank and Cantor Fitzgerald priced the benchmark class of a $996.3-million multi-borrower CMBS conduit offering at the tightest spread in more than a year. The benchmark class of the Deutsche-Cantor deal priced at 78 basis points (bp) over swaps. That was 1 bp tighter than the … [Read more...] about 6.27.14: Super-Senior CMBS Spreads Continue to Decline
3.8.13: CMBS Spreads Continue to Widen Amid Heavy Supply
Spreads on CMBS widened on mezzanine bonds from recent CMBS offerings floated by J.P. Morgan/CIBC and Wells Fargo/RBS this week. The junior triple-A bonds in the J.P. Morgan/CIBC deal priced at 110 basis points (bp), and comparable notes in the Wells/RBS issue widened further to 120 bp. Equivalent … [Read more...] about 3.8.13: CMBS Spreads Continue to Widen Amid Heavy Supply
5.30.12: Legacy CMBS Delinquency Rates Continue to Rise
In a sign that the troublesome class of 2007 loans has not yet made the grade, the CMBS delinquency rate hit a new high in May after steadily creeping up over the last three months. New research from Trepp shows that the delinquency rate is now 10.04%, up 24 basis points (bp) from last month (9.8%) … [Read more...] about 5.30.12: Legacy CMBS Delinquency Rates Continue to Rise
9.13.11: Rates on Fannie Mae Loans Continue to Decline
With 10-year Treasury rates below 2%, borrowers that qualify for Fannie Mae (and Freddie Mac) multifamily loans are seeing loan quotes at levels not seen since the formation of the Fannie Mae multifamily program in the 1950s. ValueXpress is active in both the Fannie Mae Delegated Underwriting and … [Read more...] about 9.13.11: Rates on Fannie Mae Loans Continue to Decline
8.12.11: CMBS Spread Continue to Widen
Spreads on recent issue CMBS widened further on Monday, August 8, in the wake of Standard & Poor’s decision on Friday, August 5, to lower its triple-A ratings on U.S. Treasuries. Spreads recovered as the week progressed, but benchmark spreads on recent issue AAA-rated senior paper were still … [Read more...] about 8.12.11: CMBS Spread Continue to Widen
8.30.10: CMBS Prices Continue Climb, Class AM Bonds Reach $100
CMBS prices continue to climb as a result of low Treasury yields and steady spreads. The bigger story, however, was the strength in AM and AJ bonds over the last five trading days including Friday, August 27, 2010. According to Trepp, Mezzanine AAA bonds (AMs) from 2005 and 2006 started to trade … [Read more...] about 8.30.10: CMBS Prices Continue Climb, Class AM Bonds Reach $100
7.30.10: CMBS Prices Continue a Slow, Steady Climb
CMBS prices picked up about 45 basis points (bp) in July based on the change in spread for the benchmark CMBS bond, GSMS 2007-GG10 A4. At the beginning of July, the benchmark bond was trading at about 390 bp over swaps, while finishing the month at 345 bp over swaps. In fact, some of the better … [Read more...] about 7.30.10: CMBS Prices Continue a Slow, Steady Climb