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Thursday, 31 January 2013

Morgan Stanley, BofA Launch CMBS Deal with Big Coverage

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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...





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Additional Info

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

 

 

 

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