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
9.28.12: A Quick Look at New Issue CMBS Loan Underwriting
According to research by CS First Boston, one concern about the increasing rate of CMBS issuance is that the quality of underwriting has deteriorated quickly, as originators stretch in terms of credit quality, in order to increase the volume of loans coming to the market. With this in mind, CS First … [Read more...] about 9.28.12: A Quick Look at New Issue CMBS Loan Underwriting
12.9.11: UBS and Citigroup Price CMBS Issue Amid Strong Demand
UBS and Citigroup priced a $674-million CMBS transaction on December 9 that found strong demand. The AAA-rated super-senior bonds priced mostly in line with initial pricing guidance and at tighter spreads in most cases than comparable paper in the previous multi-borrower transaction -- a … [Read more...] about 12.9.11: UBS and Citigroup Price CMBS Issue Amid Strong Demand
7.28.11: S&P Suspends Ratings on New Issue CMBS 2.0 Deals
RBS reported that Standard and Poor’s Rating Services (S&P) announced on July 27 it will not currently assign ratings to U.S. conduit CMBS transactions, including the most recent $1.5-billion CMBS transaction offered by Goldman Sachs Group Inc. and Citigroup, Inc. that was scheduled to close on … [Read more...] about 7.28.11: S&P Suspends Ratings on New Issue CMBS 2.0 Deals
8.9.10: Demand Strong for Goldman’s CMBS Issue
According to Commercial Mortgage Alert, demand easily outstripped supply for the $788.5-million CMBS conduit issue from Goldman Sachs, Citigroup and Starwood Property that rolled out on August 4. The issue collateral consists of 23 mortgages secured by 40 properties. The majority of the collateral … [Read more...] about 8.9.10: Demand Strong for Goldman’s CMBS Issue
6.28.10: JP Morgan Closes CMBS Issue
According to Trepp, JPMorgan’s $716.3-million CMBS issue, the second conduit package to go on the market this year, closed on June 24. The $416-million Class A1, representing 58% of the issue with an average expected life of 4.5 years, carried a coupon of 3.85%. The $131-million Class A2, … [Read more...] about 6.28.10: JP Morgan Closes CMBS Issue
6.10.10: JPMorgan’s Upcoming CMBS Issue Gets High Marks from Rating Agencies
JPMorgan Chase’s upcoming $716.3-million CMBS issue, the second conduit package to go on the market this year, is getting high marks from ratings agencies despite risks attached to some of the underlying loans. There will be more such conduit deals as 2010 progresses, according to the CRE Finance … [Read more...] about 6.10.10: JPMorgan’s Upcoming CMBS Issue Gets High Marks from Rating Agencies