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

Wednesday, 03 July 2019

Citigroup Dominates Ranking of Loan Contributors with $4.9Bln Volume

Citigroup so far is dominating a ranking of loan contributors to domestic, private-label CMBS transactions. The banking giant sold $4.9 billion of loans through securitizations during the first six months of the year, amounting to 12.6 percent of all loans contributed to the market.

Commercial Real Estate Direct Staff Report

Citigroup so far is dominating a ranking of loan contributors to domestic, private-label CMBS transactions. The banking giant sold $4.9 billion of loans through securitizations during the first six months of the year, amounting to 12.6 percent of all loans contributed to the market.

It's followed closely by Goldman Sachs, which has contributed $4.7 billion of loans for a 12.3 percent market share. Behind it is Deutsche Bank, with just more than $4 billion, for a 10.4 percent share.

The overwhelming majority of the three lenders' volume came through the large-loan, or single-borrower, market. Citi, for instance, contributed $2.23 billion of loans to such deals, or 46 percent of its total. Goldman Sachs contributed $3.3 billion, while Deutsche contributed $2.35 billion. The rest of their volume was funneled through conduit deals.

Top Loan Contributors Domestic, Private-Label CMBS

 

1H 2019

   

1h 2018

 

Loan Contributors

#Loans

Vol $mln

MktShr%

Vol $mln

MktShr%

Citigroup

101.24

4,864.46

12.62

3,038.91

7.57

Goldman Sachs

61.81

4,730.78

12.28

3,850.19

9.59

Deutsche Bank

66.78

4,024.24

10.44

5,540.75

13.80

Morgan Stanley

84.10

3,537.42

9.18

2,724.75

6.78

JPMorgan Chase Bank

91.76

3,165.68

8.21

5,791.70

14.42

Credit Suisse

21.20

2,883.48

7.48

1,798.10

4.48

Wells Fargo Bank

105.66

2,591.28

6.72

3,061.88

7.62

Bank of America

47.61

2,451.58

6.36

1,690.06

4.21

Barclays Bank

40.90

2,054.42

5.33

2,309.93

5.75

LoanCore Capital Markets

48.00

1,087.32

2.82

643.72

1.60

Societe Generale

35.00

1,005.49

2.61

994.73

2.48

UBS

58.20

932.95

2.42

1,021.85

2.54

Rialto Mortgage Finance

62.00

761.55

1.98

491.87

1.22

Natixis

7.00

727.63

1.89

2,320.40

5.78

ReadyCap Mortgage

95.00

399.20

1.04

164.96

0.41

Cantor Commercial Real Estate

28.50

661.52

1.72

756.39

1.88

Starwood Mortgage Funding

44.00

524.81

1.36

628.52

1.56

KeyBank

41.25

491.25

1.27

455.58

1.13

Ladder Capital Finance

36.00

407.45

1.06

837.50

2.09

Argentic Real Estate Finance

22.00

400.23

1.04

677.15

1.69

3650 REIT

19.00

332.73

0.86

0.00

0.00

Benefit Street Partners

8.00

172.08

0.45

230.59

0.57

C-III Commercial Mortgage

22.00

125.11

0.32

179.86

0.45

NCB FSB

31.00

120.31

0.31

216.82

0.54

CIBC World Markets

11.00

83.65

0.22

176.23

0.44

Blackstone Mortgage Trust

0.00

0.00

0.00

517.50

1.29

Bank of China

0.00

0.00

0.00

43.80

0.11

TOTAL

1,189.00

38,536.60

 

40,163.74

 

Conduits were developed as a way to fund relatively small loans against properties in secondary and tertiary markets. That's changed over the years as issuers and lenders sought to bolster deal credit. They started including pieces of large loans against trophy properties in their conduit transactions.

That practice hasn't changed. But the average conduit loan so far this year has shrunk to $17.9 million from the $18.4 million average for the loans securitized during the first half of 2018. And that was a reduction from the $18.9 million in 2017.

Excluding ReadyCap Commercial, which contributed $399.2 million of loans to a small-balance transaction early in the year, KeyBank wrote the smallest loans on average. The 41 loans it contributed to conduit deals had an average balance of $11.9 million. Loans contributed by Starwood Mortgage Funding, meanwhile, had an $11.93 million average balance. And those by Ladder Capital Finance had an $11.32 million average.

Commercial Real Estate Direct gives credit to lenders based on actual contributions to CMBS deals and includes only loans that were funded prior to securitization. Data are gleaned from offering material and deal prospectuses.

A total of 25 lenders contributed to CMBS transactions during the half, two fewer than last year, which included Blackstone Mortgage Trust and Bank of China, neither of which is considered a regular CMBS lender.

The average size of loans contributed to all CMBS deals was down marginally, to $32.4 million from $32.5 million during the same period last year. Natixis, an outlier during the period, had the largest average balance of all loan contributors, at $104 million. But it only contributed seven loans to the market. Among those that contributed more than 30 loans, Goldman Sachs had the largest average balance at $76.5 million. Well behind it was Deutsche at $60.3 million. Those numbers are the result of the two lenders heavy activity in the large-loan and single-borrower markets.

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





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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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