“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
4.30.14: Swap Rates Decline on Poor GDP Report
Swap rates, an important financial index that is used to set interest rates on CMBS conduit loans, fell this week after the government reported annualized Gross Domestic Product (GDP) growth of a mere 0.01% in the first quarter of 2014, according to the “advance” estimate released by the Bureau of … [Read more...] about 4.30.14: Swap Rates Decline on Poor GDP Report
AAHOA Alert! 4.30.14: CMBS Conduit Loan Rates for Hotels Fall Below 5%
Lender competition for CMBS conduit loans for hotels, particularly limited-service hotels owned by AAHOA members, is contributing to rapidly declining interest rates for borrowers. In addition, small balance borrowers ($3 million-$10 million) are enjoying low interest rates that were previously … [Read more...] about AAHOA Alert! 4.30.14: CMBS Conduit Loan Rates for Hotels Fall Below 5%
4.18.14: CMBS Conduit Loan Rates Fall
The combination of lower CMBS yields, competition and a declining swap rate is contributing to rapidly declining interest rates for CMBS conduit loan borrowers. As of Thursday, April 17, the 10-year Swap rate used to set CMBS loan interest rates had fallen to 2.75% from an April high of 2.93% on … [Read more...] about 4.18.14: CMBS Conduit Loan Rates Fall
7.9.13: Swap Rates and Loan Spreads Stabilize…for Now
After the 10-year Swap Rate (Swap) Index used to set CMBS conduit rates jumped from 2.37% to 2.60% on June 19 while Federal Reserve Chairman Bernanke spoke at a press conference and further spiked to 2.86% on Monday, June 24, the index has settled into a range of 2.80%-2.90%. Since the July 4th U.S. … [Read more...] about 7.9.13: Swap Rates and Loan Spreads Stabilize…for Now
6.24.13: CMBS Borrowers Shell Shocked over Rapid Rise in Rates
Borrowers are struggling to come to grips with what happened to CMBS loan rates over just a few days since Ben Bernanke spoke at a press conference on Wednesday, June 19. The 10-year Swap Rate (Swap) Index used to set CMBS conduit rates was at 2.37% that day, already reflecting an increase from just … [Read more...] about 6.24.13: CMBS Borrowers Shell Shocked over Rapid Rise in Rates
5.22.13: Fannie Mae and Conduit Rates Converging for Multifamily
With Fannie Mae’s recent 10-basis-point increase in fees it charges lenders to guarantee loans and the continued decline in CMBS conduit rates, the rate gap between the two multifamily products is diminishing, particularly for smaller balance (under $10 million) loans on “B” quality multifamily … [Read more...] about 5.22.13: Fannie Mae and Conduit Rates Converging for Multifamily
3.11.13: Rising Property Values, Low Rates Spur Increase in Defeasance
More borrowers are using defeasance to release properties from securitized mortgages so they can take advantage of improving market conditions to sell or refinance the assets, according to Commercial Mortgage Alert. Some $5.9 billion of U.S. loans in commercial MBS collateral pools were defeased … [Read more...] about 3.11.13: Rising Property Values, Low Rates Spur Increase in Defeasance
6.29.12: CMBS Spreads Widen Further, Affecting Loan Rates
After holding relatively steady in the face of rising CMBS spreads, conduit loan rates are starting to increase; spreads on the two most recent deals from JP Morgan/CIBC and UBS/Barclays widened at pricing. Prior to these deals, CMBS spread widening was offset by decreases in the swap rate that left … [Read more...] about 6.29.12: CMBS Spreads Widen Further, Affecting Loan Rates
6.15.12: CMBS Conduit Loan Rates Steady Despite Capital Market Turbulence
CMBS conduit loan rates are holding relatively steady despite market turbulence surrounding the European debt crisis. Fixed income professionals are increasingly worried about whether Greece will exit the European Union and whether debt-related trouble will spread to Spain, Italy and Ireland. … [Read more...] about 6.15.12: CMBS Conduit Loan Rates Steady Despite Capital Market Turbulence