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Wednesday, 08 July 2009

Treasury Picks 9 Managers to Run Investment Funds

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Commercial Real Estate Direct Staff Report

The United States Department of the Treasury has picked nine fund managers with which it will partner under its Public-Private Investment Program for legacy securities.

Under the program, Treasury will invest up to $30 billion of equity and debt in funds formed by fund managers and acquire legacy CMBS and non-agency residential MBS.

Bonds that are eligible for the funds must have been issued before this year and have had initial ratings of AAA from at least two rating agencies. According to the Treasury's announcement, eligible securities cannot have ratings enhancements, which would indicate that bonds resulting from recent resecuritizations would probably be ineligible.

More than 100 applications were filed with the Treasury, which has selected the following:

- AllianceBernstein, with sub-advisors Greenfield Partners and Rialto Capital Management;

- Angelo, Gordon & Co. and GE Capital Real Estate, whose team also includes CastleOak Securities and Park Madison Partners;

- BlackRock Inc.;

- Invesco Ltd.;

- Marathon Asset Management;

- Oaktree Capital Management;

- RLJ Western Asset Management;

- TCW Group, and

- Wellington Management Co.

Already, the AllianceBernstein team has made a filing to raise, through an initial public offering, equity for FourSquare Capital Corp., a newly formed REIT that would invest in a public-private investment fund, or PPIF. Its partners, Greenfield and Rialto, are both seasoned specialists in distressed assets. Rialto, for instance, is led by Jeffrey Krasnoff, a co-founder of what ultimately became LNR Partners, perhaps the biggest name in the CMBS special servicing world.

To be eligible, managers had to be able to raise at least $500 million of capital, have a demonstrated capability of investing in the targeted securities, have more than $10 billion of assets under management and have the operational capacity to manage a PPIF.

Each fund manager will receive an equal allocation of capital from Treasury and will have up to 12 weeks to raise the necessary $500 million for their PPIF. That equity would be matched by the Treasury, which would provide up to 100 percent of the equity raised in the form of debt. The PPIFs will also be able to raise third-party debt, either from private lenders or through the Term Asset-Backed Securities Loan Facility.

Comments? E-mail Orest Mandzy or call him at (267) 247-0112, Ext. 211.



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“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: Executive changes, general (EXECG), Institutional Investment (INS), Opportunity Funds (OPPY)
  • Deal Name: Bear Stearns Commercial Mortgage Securities Trust, 2006-PWR12
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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 - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

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CMBS 2.0 Spreads

AAAspreads

Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

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