Strong demand led to tight pricing on newly issued CMBS securities amid the marketing of $10 billion of bonds. Wells Fargo, Morgan Stanley, Bank of America and NCB priced the $1-billion conduit issue on June 14, with the super-senior, long-term AAA-rated bonds pricing at 64 basis points (bp) over … [Read more...] about 6.20.21: CMBS SPREADS CONTINUE TO TIGHTEN ON STRONG INVESTOR DEMAND
6.30.20: CMBS LOAN RATES CONTINUE TO DECLINE AS CMBS SPREADS RALLY
Spreads on CMBS securities declined in June, positively impacting CMBS conduit loan rates. The benchmark AAA-rated super-senior CMBS closed the month at 115 basis points (bp) over swaps, down from 145 bp over swaps on June 1. Super-senior AAA-rated CMBS spreads peaked in March during the height of … [Read more...] about 6.30.20: CMBS LOAN RATES CONTINUE TO DECLINE AS CMBS SPREADS RALLY
7.16.18: Industry Veterans See Stable CMBS Conduit Loan Spreads for Balance of 2018
CMBS participants foresee relatively flat prices for CMBS securities for the second half of 2018. This would be good news for CMBS borrowers as “re-trading” of CMBS loan spreads to borrowers would remain muted if CMBS prices remain stable. Re-trading occurs when spreads on CMBS securities rise … [Read more...] about 7.16.18: Industry Veterans See Stable CMBS Conduit Loan Spreads for Balance of 2018
6.8.18: CMBS Spreads Remain Steady
CMBS conduit loan borrowers are finding calm waters as spreads on CMBS securities have been stable at attractive levels for most of 2018. This has help offset the rise in the 10-year Swap rate, minimizing the impact on interest rates for CMBS conduit loan borrowers. The 10-year Swap rate, the … [Read more...] about 6.8.18: CMBS Spreads Remain Steady
9.12.17: CMBS Conduit Loan Rates Stable as CMBS Spreads Remain Steady
CMBS conduit loan borrowers are finding calm waters as spreads on CMBS securities have been stable at attractive levels for most of 2017 to date. In addition, the 10-year Swap rate, the benchmark index for setting interest rates on CMBS conduit loans, has remained in a relatively narrow range of … [Read more...] about 9.12.17: CMBS Conduit Loan Rates Stable as CMBS Spreads Remain Steady
4.25.17: CMBS Conduit Loan Rates Stable as CMBS Spreads Remain Steady
CMBS conduit loan borrowers are finding calm waters as spreads on CMBS securities have been stable for most of 2017 to date. In addition, the 10-year Swap rate, the benchmark index for setting interest rates on CMBS conduit loans, has remained in a relatively narrow range of roughly 2.30%-2.60%. … [Read more...] about 4.25.17: CMBS Conduit Loan Rates Stable as CMBS Spreads Remain Steady
2.3.17: CMBS Spreads Tighten Amid Limited Supply …
Two CMBS transactions recently priced with long-term super-senior AAA-rated bonds pricing at levels not seen since mid-2015. The first deal, a $1.3-billion offering by Citigroup and Deutsche Bank, priced the super-senior CMBS at 90 basis points (bp) over swaps, down 24 bp from the average of … [Read more...] about 2.3.17: CMBS Spreads Tighten Amid Limited Supply …
8.5.16: “Risk Retention” CMBS Deal Prices at Tight Spreads
A new issue CMBS conduit transaction priced on Thursday, August 4 at the tightest spreads since summer 2015. The issuers, Wells Fargo, Bank of America and Morgan Stanley, priced the long-term super-senior bonds from the $871-million offering at 94 basis points (bp) over swaps. This was significantly … [Read more...] about 8.5.16: “Risk Retention” CMBS Deal Prices at Tight Spreads
8.4.16: Meanwhile, Tight CMBS Spreads and Low Treasury Yields Provide Great Rates for Borrowers
After long-term super-senior CMBS bonds peaked at 173 basis points (bp) over swaps in May 2016, spreads have steadily declined to 94 bp when Wells Fargo, Bank of America and Morgan Stanley priced the long-term super-senior bonds from the $871-million offering on Thursday, August 4. Rates to … [Read more...] about 8.4.16: Meanwhile, Tight CMBS Spreads and Low Treasury Yields Provide Great Rates for Borrowers
5.24.16: CMBS Spreads Decline Due to Lack of Supply
CMBS spreads continue to decline as the pace of new CMBS issuance falls well behind last year. U.S. CMBS volume as of late May was $28.5 billion versus $44.1 billion at the same time last year. Volume has fallen due to significant CMBS spread widening that reversed course in the beginning of March … [Read more...] about 5.24.16: CMBS Spreads Decline Due to Lack of Supply
