The 10-year swap rate and 10-year Treasury rate have dropped gradually since May. This is despite an economic rebound that would suggest higher interest rates as the world recovers from the COVID-19 pandemic. The Federal Reserve, however, indicates it will be “highly accommodative for many years” … [Read more...] about 7.31.21: CMBS LOAN RATES NEAR RECORD LOWS AS TREASURY AND SWAP RATES FALL
More commercial real estate bridge lenders are turning to the Commercial Loan Obligation (CLO) market to package their floating rate loans into securities, in what is shaping up to be a record-setting year. Some $14.6 billion of commercial real estate (CRE) CLO deals have priced through May 13, and … [Read more...] about 5.9.21: CLO ISSUANCE SHAPING UP TO SMASH RECORD
The 10-year Treasury yield dropped to a record low on Tuesday as the historic decline in U.S. rates continued amid the coronavirus outbreak and the Federal Reserve’s 50-basis-point (bp) emergency interest rate cut two weeks before its March meeting. The 10-year Treasury yield fell to an intraday … [Read more...] about 3.3.20: CMBS LOAN RATES AT RECORD LOWS AS TREASURY AND SWAP RATES FALL
New loan requests are surging for ValueXpress as interest rates for CMBS conduit loans have plummeted to the lowest levels in history. Recall that the interest rate on a 10-year fixed-rate CMBS conduit loan consists of the 10-year swap rate plus the loan spread. The swap rate has declined steadily … [Read more...] about 9.9.19: Loan Requests Surge Amid Record Low Rates
Commercial and multifamily mortgage bankers closed a record $573.9 billion of loans in 2018, according to MBA's 2018 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation. Solid fundamentals, growing property values, low interest rates and strong appetites from both … [Read more...] about 4.4.19: Commercial and Multifamily Mortgage Bankers Close a Record $573.9 Billion of Loans in 2018!
Everyone involved in the origination and underwriting of CMBS conduit loans or the creation and selling of CMBS securities backed by the loans is keenly aware of the swap market. The swap rate is integral to the interest rate charged CMBS conduit loan borrowers and a key factor in the profitability … [Read more...] about 2.16.15: CMBS Borrower Loan Rates Off Record Lows with Swap Increases
The Small Business Administration's (SBA) 504 loan program is providing long-term, fixed-rate financing for commercial real estate and the purchase of long-term capital assets at the lowest interest rates since the program's inception. The debentures that funded this month's 20-year 504 loans were … [Read more...] about 9.8.11: SBA 504 Loans Hit Record-Low Interest Rates for September
On the heels of a CMBS industry conference where cautious optimism was the common theme, and a week in which several new CMBS deals were announced, a record setting delinquency rate of 9.34% for January indicates that the CMBS market still has some ground to make up, according to a report from … [Read more...] about 2.1.11: Trepp Reports Delinquency Rate Reaches Another Record High