Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Friday, 01 March 2019

Ladder Capital Funded $1.5Bln of Bridge Loans in 2018, Exceeding Conduit Loan Volume

The New York mortgage REIT last year funded more bridge loans than conduit loans that are sold through the CMBS market. It originated $2.8 billion of loans in 2018, $1.5 billion of which was comprised of bridge loans. Despite the healthy volume of bridge-loan originations, the fourth quarter marked the first time in more than two years that Ladder's total inventory of bridge loans declined from the previous quarter.

Commercial Real Estate Direct Staff Report

Ladder Capital Corp. last year for the first time funded more bridge loans than conduit loans that are sold through the CMBS market.

The New York mortgage REIT originated $2.8 billion of loans in total. A total of $1.5 billion of that was comprised of bridge loans, bringing its portfolio of such loans up to $3.2 billion, and $1.3 billion was comprised of conduit loans.

That's a reflection of where the company saw opportunities. In the conduit business, spreads remained relatively flat during the first half, but became extremely volatile during the latter half of the year, making it challenging to originate loans profitably. During the fourth quarter, for instance, Ladder sold $365 million of loans through the CMBS market, generating $7 million of net profit, for a profit margin of 1.9 percent. That compares with a 2.7 percent margin in the first quarter. For the full year, it generated $30 million of profits, for a 2.3 percent margin, from the sale of $1.3 billion of loans.

Market conditions have improved in the conduit business, in large part because the 10-year Treasury yield has declined. So, Ladder's activity might very well shift more towards the conduit-lending...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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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

 

RCA CPPI

 

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CMBS 2.0 Spreads

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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

 

 

 

REITCafe

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