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CMBS

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  • A $1.4bn single borrower CMBS deal hit the market on Wednesday, as the pipeline for single asset/single borrower deal bulges with floating rate borrowers keen to refinance deals ahead of further rate hikes.
  • Pre-crisis CMBS loans were in the spotlight this week, after a raft of property liquidations in three deals wiped out $410m of bonds, while Fitch reported that delinquencies jumped in June by the highest amount for six years.
  • A Dutch buy-to-let RMBS offering from RNHB, which is expected to be priced next week, is piquing the interest of investors with commercial real estate exposure on top of the residential collateral pooled in the deal.
  • The US CMBS market is becoming more concentrated, with a smaller number of lenders structuring more deals exposed to the same properties. Lenders will have to make the CMBS experience a better one for borrowers if they want to pump life back into the market.
  • More commercial real estate properties are flowing into the single asset, single borrower CMBS market as large loans come up for refinancing, with four deals out in the market this week in addition to a new conduit deal.
  • US CMBS volumes have raced past last year’s figures, with CMBS lenders competing harder on pricing with other forms of commercial real estate financing, despite lingering concerns over the retail sector and credit fundamentals.
  • Natixis and Ivanhoé Cambridge have teamed up to sell the first green CMBS deal in the US, backed by an energy efficient Manhattan office building, in a move that could encourage other real estate lenders to follow as interest builds in using securitization as a tool for green financing.
  • GoldenTree Asset Management and real estate investment firm GTIS Partners have teamed up on a joint venture focusing on financing real estate debt across a host of property types.
  • CMBS lenders are resorting to offering more interest only loans to win business as ‘desperate’ local and regional banks step up commercial real estate lending activities, prompting investor concerns about the direction of underwriting standards in the market.