$2B London Loan On Deck; Default Likely

April 6, 2009

Tweet A $2B loan against nine London properties comes due in October, and it is likely that the borrower as the deal is competing with $70B of competing loans which need to be refinanced through 2010 in the UK.  An amazing note on this deal is that, Only 12 banks are prepared to lend more […]


MBS, CMBS, RMBS and ABS Spreads Update

April 3, 2009

Tweet The ESF has released its March 2009 securitized debt spread data book covering US and European markets. The PDF file provides a quick snapshot on spreads on various types of ABS debt. The file is embedded below:


CRE Crisis To Eclipse Early 90’s

March 25, 2009

Tweet The WSJ has an article today on the accelerating pace of defaults and delinquencies on commercial loans, and the likelihood that the crisis could eclipse that which occurred in the early 1990’s. Some notable items in the article include: According to an analysis of bank financial reports by The Wall Street Journal, the broad […]


Banks Bracing For CRE Defaults

March 23, 2009

Tweet An article in Bloomberg this morning provides some additional detail on bank exposure to commercial real estate. Most of the banks seem ready to take on the losses, but they don’t seem too worried, which is quite reminiscent of the early days of the crisis in the residential sector. According to the article: The […]


Government Moving Towards Bailout of Commercial Real Estate

March 9, 2009

Tweet But office vacancy rates are heading toward record levels, according to one estimate, and banks are exposed, with $1.72 trillion in commercial real estate loans outstanding as of Feb. 18. The Christian Science Monitor has a pretty high-level article on the state of the commercial lending market. For almost a year now, many of […]


Moody’s Estimates Losses on 2006 Sub-Prime MBS Debt (Residential) At 28-32 Percent

February 26, 2009

Tweet Moody’s has said it intends on reviewing all 2005, 2006, and 2007 sub-prime mortgage bonds, covering some $680B in original loan balances. The projected losses across sub-prime debt issued in 2006 are estimated to be 28-32%. In 2006, spreads over benchmark rates were roughly 200 basis points for sub-prime (BBB-) debt. By the end […]


Government Expands Financial Stability Act to Include CMBS

February 10, 2009

Tweet The Term Asset-Backed Securities Loan Facility (TALF) has been expanded to include commercial mortgage-backed securities (CMBS). The TALF is part of the Financial Stability Act being introduced today by Treasury Secretary Timothy Geithner this morning which seeks to address the frozen secondary markets for Asset-Backed Securities. The “fact sheet” for the program has been embedded below, […]


CMBS Ratings Being Reviewed – It’s a Slippery Slope

February 5, 2009

Tweet Bloomberg is reporting that Moody’s is reviewing its ratings of roughly $300B worth of CMBS debt amidst a drop in values. According to the article, The review encompasses 52 percent of outstanding U.S. commercial mortgage-backed debt ranked by Moody’s The ratings of so-called senior and mezzanine AAA bonds, the top two classes of CMBS […]


Top 10 Bay Area CMBS Deals on RealPoint Watchlist

February 2, 2009

Tweet An article spotted at The Registry on CMBS included an interesting table highlighting the top 10 CMBS deals in the Bay Area which are essentially “on the watchlist”. In addition to these, RealPoint, which provided the data to The Registry has an additional 257 properties on their watchlist. Amongst the properties listed are Tishman […]


Infighting Amongst Hancock Tower Debt Holders

January 21, 2009

Tweet The WSJ had an article about the default of Hancock Tower and the disagreement between debt holders about foreclosure. The senior debt holders want foreclosure and the more junior note holders obviously want an extension out of fear they will be wiped out. The most senior debt piece is reportedly held by the John […]

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