November 19, 2009
The commercial mortgage backed securities issued earlier this week on the back of DDR retail assets has caught the attention of others who were closely monitoring that issue. Some reports indicated that the DDR deal was up to 10x oversubscribed. So, not only is a follow on issue for DDR said to be in the works by Citigroup, but Bank of America is preparing a $460M CMBS deal for properties owned by Fortress Investment Group (FIG: 7.21 +0.42%).
The yield on the DDR issue was about 3.8-4%, and surprisingly a small amount of purchasers opted to lever the deal through TALF, which means they were happy with the paltry yields.
- DDR Issue Signals Slow Return of CMBS Market
- TALF Eligible CMBS Could Shrink Dramatically
- Moody’s Estimates Losses on 2006 Sub-Prime MBS Debt (Residential) At 28-32 Percent
- Government Expands Financial Stability Act to Include CMBS
- CMBS Delinquency Rate Continues To Rise; Inland Western Issues $500M CMBS Deal