A recently released report identified Houston, Texas as one of the most troubled markets within the Kroll Bond Rating Agency (KBRA) ratings universe, which covers most major U.S. metropolitan areas. KBRA’s observations of the top 25 lodging markets revealed that loans within the Houston MSA were … [Read more...] about 6.21.17: Houston Awaits Hotel Market Recovery
12.7.16: … But a Busy CMBS Market Now Leaves a Hole for First-Quarter 2017
CMBS issuance for the beginning of 2017 looks very weak because CMBS issuers are clearing out loan inventory this month in anticipation of risk-retention rules effective December 24. According to a review by Commercial Mortgage Alert (CMA), only seven transactions totaling $6.4 billion are in the … [Read more...] about 12.7.16: … But a Busy CMBS Market Now Leaves a Hole for First-Quarter 2017
9.18.16: CMBS Market Prepares for Costs Related to Risk Retention
Borrowers should expect a modest increase in loan spreads beginning in late October as the market prepares for the economic impact of risk retention rules that take effect December 24. Initially CMBS lenders projected the increase on loan spreads would be as much as 50 basis points (bp), but now … [Read more...] about 9.18.16: CMBS Market Prepares for Costs Related to Risk Retention
6.24.16: …While the CMBS Market Awaits Upcoming Deal to Determine Brexit Impact
With Great Britain’s decision to exit the European Union (EU), the 10-year U.S. treasury yield had its largest single-day decline on Friday, and then on Monday, the yield fell to 1.46%, approaching its all-time intra-day low of 1.39% recorded in July 2012. Investors pushing Treasury yields lower … [Read more...] about 6.24.16: …While the CMBS Market Awaits Upcoming Deal to Determine Brexit Impact
3.18.15: CMBS Market Update – Prices Steady
The benchmark bonds in a $1.3-billion conduit offering led by Deutsche Bank and Cantor Fitzgerald priced at 86 basis points (bp) over swaps on Wednesday, March 18, matching the second-tightest level so far this year. The spread on long-term, super-senior bonds has pretty much hovered between 86 bp … [Read more...] about 3.18.15: CMBS Market Update – Prices Steady
9.5.14: CMBS Market Update and August Review
CMBS spreads are slowing declining after widening dramatically in August; however, the market did not see a new multi-borrower conduit deal price after mid-August, so dealers noted that the spread improvement was based on secondary market trades. The last new multi-borrower CMBS deal to price was … [Read more...] about 9.5.14: CMBS Market Update and August Review
7.14.14: Out-of-Market SBA Lending on the Rise
American Banker recently reported that more community banks are offering Small Business Administration (SBA) loans far beyond their local markets, hoping that the income boost outweighs the long-term risk of lending in unfamiliar regions. Strong demand for SBA loans and a strong secondary market … [Read more...] about 7.14.14: Out-of-Market SBA Lending on the Rise
3.17.14: CMBS Prices Remain Firm; Market Stable
CMBS prices remained in a tight range during the last 30 days in which four CMBS deals priced. The benchmark long-term, super-senior bonds from the first issue, a $1-billion offering by Citigroup, Goldman Sachs, MC-Five Mile and Cantor Fitzgerald, priced on February 28 at 93 basis points (bp) over … [Read more...] about 3.17.14: CMBS Prices Remain Firm; Market Stable
8.9.13: Market Swallows Flood of CMBS Issues at Tighter Spreads
CMBS buyers returned to the market to gobble up the latest wave of multi-borrower offerings – four deals totaling more than $4 billion. Furthermore, prices generally tightened on each issuance. Now, new-issue prices on benchmark paper from commercial MBS offerings have retraced almost half of their … [Read more...] about 8.9.13: Market Swallows Flood of CMBS Issues at Tighter Spreads
6.14.13: CMBS Shops Challenged to Hold Spreads in Tough Market
CMBS conduit loan interest rates, typically set at closing, are based on two numbers added together: the 10-year Swap Rate (Swap) Index and the “Spread” (an amount added to the Swap based on current CMBS bond prices and a profit margin). CMBS conduit loan borrowers are facing a double hit on … [Read more...] about 6.14.13: CMBS Shops Challenged to Hold Spreads in Tough Market