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
4.16.13: CMBS Spreads Do an About Face
After spreads widened on a recent UBS-Barclays CMBS transaction that priced on April 11, commercial MBS buyers snatched up three multi-borrower offerings totaling $3.4 billion this week, pushing spreads tighter with the pricing of each transaction, according to Commercial Mortgage Alert. Long-term … [Read more...] about 4.16.13: CMBS Spreads Do an About Face
3.8.13: CMBS Spreads Continue to Widen Amid Heavy Supply
Spreads on CMBS widened on mezzanine bonds from recent CMBS offerings floated by J.P. Morgan/CIBC and Wells Fargo/RBS this week. The junior triple-A bonds in the J.P. Morgan/CIBC deal priced at 110 basis points (bp), and comparable notes in the Wells/RBS issue widened further to 120 bp. Equivalent … [Read more...] about 3.8.13: CMBS Spreads Continue to Widen Amid Heavy Supply
2.26.13: CMBS Spreads Widen; Borrower Spreads Increase
Amid a flood of issuance (see the article below) long-term super-senior CMBS spreads have widened from the levels experienced in early February. Long-term super-senior CMBS with an initial 9.5- to 10-year life had seen spreads steady at 72 basis points (bp) since the beginning of 2013. However, the … [Read more...] about 2.26.13: CMBS Spreads Widen; Borrower Spreads Increase
2.5.13: Spreads Tighten Further on Junior Investment-Grade CMBS
While AAA-rated senior investment-grade CMBS spreads remain flat, junior investment-grade CMBS spreads continue to tighten for recent CMBS issues as investors take on additional credit risk in search of more yields. Long-term super-senior CMBS with an initial 9.5- to 10-year life have seen spreads … [Read more...] about 2.5.13: Spreads Tighten Further on Junior Investment-Grade CMBS
9.19.12: Tightening CMBS Spreads a Bonanza for Borrowers – Part II
In July I wrote that CMBS spread tightening has resulted in a very favorable rate environment for CMBS conduit borrowers compared with just a few months earlier. Well, based on the recent CMBS issues, borrowing rates are poised to drop further in upcoming weeks as the results of recent CMBS issues … [Read more...] about 9.19.12: Tightening CMBS Spreads a Bonanza for Borrowers – Part II
7.26.12: CMBS Spreads Reverse Direction and Tighten
CMBS spreads reversed direction and tightened in the past two weeks after CBMS offerings from Morgan Stanley/Bank of America (BoA) and Wells Fargo/RBS priced at sequentially tighter spreads from peak levels seen in June when UBS/Barclays widened pricing of long-term super senior CMBS from its … [Read more...] about 7.26.12: CMBS Spreads Reverse Direction and Tighten
7.23.12: Tightening CMBS Spreads a Bonanza for Borrowers
CMBS spread tightening has resulted in a very favorable rate environment for CMBS conduit borrowers compared with a few weeks ago. “Benchmarking borrower rates is becoming a daily event,” commented Michael D. Sneden, Executive Vice President of ValueXpress. “Borrowing rates are once again solidly … [Read more...] about 7.23.12: Tightening CMBS Spreads a Bonanza for Borrowers
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
3.26.12: CMBS Conduit Loan Rates Decline with CMBS Spreads
CMBS conduit loans rates are declining in concert with the powerful rally in the CMBS market that began in January. Strong demand for CMBS continues based on the results of a $925-million conduit offering led by Wells Fargo and RBS that priced on Friday, March 22. All but one of the investment-grade … [Read more...] about 3.26.12: CMBS Conduit Loan Rates Decline with CMBS Spreads