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

Thursday, 31 January 2013

Morgan Stanley, BofA Launch CMBS Deal with Big Coverage

Written by 
Rate this item
(0 votes)

Commercial Real Estate Direct Staff Report

Morgan Stanley and Bank of America have launched another CMBS conduit deal, the first to have an underwritten debt-service coverage level of 2.0x in more than five years.

The transaction, Morgan Stanley Bank of America Merrill Lynch Trust, 2013-C8, is backed by 54 loans with a balance of $1.14 billion. It's the second conduit so far this year by the team and would be the fifth overall to price.

The conduit that preceded it, WFRBS Commercial Mortgage Trust, 2013-C11, had an underwritten DSCR of 1.97x. Its collateral pool includes a 29.7 percent concentration of loans that require only interest payments for their full terms. Because they only pay interest, they typically have higher DSCRs than loans that amortize. In contrast, the MSBAM deal has a 19.2 percent concentration of full-term IO loans.

Nonetheless, early price talk on most of the MSBAM deal's classes is in line with the WFRBS transaction, which saw its last-pay AAA class price at a spread of 72 basis points...


“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • Subject: Commercial MBS (CMBS)
  • Company: BankBoston Corp., Mervyn's
  • Private: Yes
Read 760 times

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





  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds