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Thursday, 07 November 2019

Domestic CMBS Issuance Already Tops 2018 Total

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Commercial Real Estate Direct Staff Report

Domestic, private-label CMBS issuance so far this year has exceeded all of last year's volume, when deals that are expected to price within the next few days are included.

So far, 107 deals totaling $72.5 billion have priced. But another five transactions - three conduits and two single-borrower deals - are in the market, which would bring total issuance to 112 transactions totaling $76.2 billion. That would compare with the 121 deals with a balance of $76.1 billion that priced all of last year.

The volume so far is skewed toward conduit deals, as it was last year. While 66 single-borrower deals have priced or are poised to price, those total only $34.7 billion. In contrast, 44 conduit deals totaling $40.7 billion have priced or soon will. Last year, the mix was comparable, with 44 conduits totaling $40.2 billion and 75 single-borrower deals totaling $35.7 billion. The rest of this year and last's volume is comprised of a small number of multi-borrower, floating-rate deals and small-balance transactions.

Driving volume has been the hefty originations from conduit lenders. With interest rates at historic lows, they've been piling up loans. And the market has cooperated, allowing them to profitably securitize them.

Conduit transactions that priced during the third quarter and were structured with either horizontal or hybrid risk retention have provided their loan contributors with profit margins ranging from 1.02 percent to 8.6 percent.

Margins improve when loans get securitized while prevailing interest rates decline from where they were when those loans were originated. But they'll decline if rates climb.

Comments? E-mail Orest Mandzy, or call him at (267) 327-4281.


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Additional Info

  • Syndicate to Realpoint: No
  • Subject: CMBS - non-deal specific (CMBS-G), Commercial MBS (CMBS)
  • Private: No
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Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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