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  • Lloyds Banking Group has preplaced a new £3.3 billion ($5.32 billion) issue from its U.K. residential mortgage-backed vehicle, Arkle, with a small group of investors as uncertainty continues to dog the European and U.S. markets.
  • Wells Fargo and Bank of America-Merrill Lynch are pitching a $160 million securitization of non-performing residential mortgage assets, called Volt 2011-NPI-1, according to a life insurance investor.
  • JPMorgan Chase has reorganized its mortgage unit, with a more borrower-friendly approach.
  • Credit default swap spreads on U.S. agency mortgage-backed securities widened to their highest level since September 2009 on concerns that agency MBS sales could surge if U.S. sovereign debt is downgraded.
  • Aston Asset Management’s New ASTON/DoubleLine Core Plus Fixed Income Fund is planning to invest in mortgage-backed securities among other asset classes.
  • Bank of America-Merrill Lynch is said to be considering a sale of some $40 billion of mortgage-servicing rights linked to loans issued by Freddie Mac.
  • Broker-dealer Kellner DiLeo has hired Robert Egan as senior v.p. and global head of international securities lending.
  • The percentage of loans paying off on their balloon date improved in June by 7 points to 42.4%, well above the previous 12-month average of 39.6%, according to Trepp.
  • An estimated one-quarter of loans modified through Citigroup’s private programs have redefaulted over the past two years, according to John Gerspach, the bank’s cfo.