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Friday, 05 October 2018

JPMorgan Holds on to Top Spot Among CMBS Loan Contributors

JPMorgan Chase Bank contributed $2.8 billion of loans to CMBS transactions during the third quarter - a whopping 36 percent less than it did during the same period a year ago. Nonetheless, it maintained its hold of the top spot in a ranking of loan contributors for the year through September.

Commercial Real Estate Direct Staff Report

JPMorgan Chase Bank contributed $2.8 billion of loans to CMBS transactions during the third quarter - a whopping 36 percent less than it did during the same period a year ago.

Nonetheless, it maintained its hold of the top spot in a ranking of loan contributors for the year through September.

Deutsche Bank, which through September ranked number two, saw its third-quarter contributions cut by more than half as the overall volume of large-loan transactions - a sector in which it shines - shrunk by more than one-third in the latest quarter when compared with a year ago.

Top Loan Contributors
Domestic, Private-Label CMBS

 

3Q2018

3Q2017

Lender

#Loans

Vol
$mln

Mk
Shr%

Vol
$mln

Mkt
Shr%

JPMorgan Chase Bank

32.03

2,775.06

15.73

4,335.90

16.51

Goldman Sachs

37.70

2,712.21

15.38

2,470.64

9.41

Morgan Stanley

31.80

1,995.12

11.31

2,743.42

10.45

Wells Fargo Bank

45.90

1,569.82

8.90

1,749.79

6.66

Citigroup

60.50

1,470.35

8.34

3,176.02

12.09

Deutsche Bank

44.67

1,452.75

8.24

3,145.88

11.98

Bank of America

31.00

964.72

5.47

1,279.52

4.87

Barclays Bank

9.50

651.93

3.70

1,694.97

6.45

Natixis

21.00

628.51

3.56

814.62

3.10

UBS

41.00

618.34

3.51

556.62

2.12

Credit Suisse

8.60

562.85

3.19

458.95

1.75

Starwood Property Trust

14.00

397.44

2.25

515.00

1.96

Cantor Commercial Real Estate

17.00

353.47

2.00

-

-

Societe Generale

20.30

332.60

1.89

768.07

2.92

Rialto Mortgage Finance

24.00

294.22

1.67

244.89

0.93

Argentic Real Estate Finance

25.00

263.44

1.49

269.74

1.03

NCB FSB

37.00

143.08

0.81

120.92

0.46

KeyBank

31.00

132.30

0.75

238.32

0.91

Benefit Street Partners

12.00

122.99

0.70

208.59

0.79

Ladder Capital Finance

13.00

101.98

0.58

145.66

0.55

CIBC

13.00

93.55

0.52

208.65

0.79

Jefferies LoanCore

-

-

-

486.83

1.85

Bancorp Bank

-

-

-

314.36

1.20

Principal Commercial Capital

-

-

-

241.16

0.92

Basis Real Estate

-

-

-

74.25

0.28

TOTAL

570.00

17,636.73

688.00

26,267.76

 

JPMorgan, Deutsche and Goldman Sachs contributed $22.3 billion of loans, or 38.3 percent of the collateral that was securitized in the 97 deals that priced this year through September. That's inline with the 38.5 percent of the collateral the three contributed to last year's deal volume.

While the number of lenders contributing loans to CMBS deals continues to decline - only 26 have contributed to transactions, down from 29 last year - the market hasn't gotten any more concentrated. The 10 most-active lenders accounted for 81.2 percent of all CMBS loan contributions, down slightly from the 82 percent concentration the top-10 had last year.

Top Loan Contributors
Domestic, Private-Label CMBS

 

9Mos 2018

9Mos 2017

 

#Loans

Vol
$mln

Mkt
Shr%

Vol
$mln

Mkt
Shr%

JPMorgan Chase Bank

112.87

8,566.76

14.82

7,620.22

12.71

Deutsche Bank

142.32

6,993.50

12.10

7,463.89

12.45

Goldman Sachs

80.88

6,562.39

11.35

7,966.71

13.29

Morgan Stanley

104.97

4,719.87

8.17

5,654.73

9.43

Wells Fargo Bank

138.27

4,631.70

8.01

4,189.46

6.99

Citigroup

164.22

4,509.26

7.80

6,134.83

10.23

Barclays Bank

55.15

2,961.86

5.12

3,241.23

5.41

Natixis

60.88

2,948.91

5.10

1,935.19

3.23

Bank of America

85.60

2,654.78

4.59

3,128.59

5.22

Credit Suisse

16.03

2,360.95

4.08

1,845.84

3.08

UBS

105.00

1,640.19

2.84

1,501.10

2.50

Societe Generale

43.73

1,327.33

2.30

1,018.09

1.70

Starwood Property Trust

63.00

1,025.96

1.77

955.60

1.59

Argentic Real Estate Finance

71.00

940.59

1.63

699.75

1.17

Ladder Capital Finance

80.00

939.48

1.63

771.36

1.29

Rialto Mortgage Finance

55.00

786.09

1.36

1,186.81

1.98

Cantor Commercial Real Estate

48.00

1,109.86

1.92

304.92

0.51

Jefferies LoanCore

25.00

643.72

1.11

486.83

0.81

KeyBank

53.50

587.88

1.02

442.06

0.74

Blackstone Mortgage Trust

0.5

517.50

0.90

100.00

0.17

NCB FSB

88

359.90

0.62

260.15

0.43

Benefit Street Partners

29

353.58

0.61

620.46

1.04

CIBC

31

269.78

0.47

318.06

0.53

C-III Commercial Mortgage

39

179.86

0.31

145.07

0.24

ReadyCap Commercial

50

164.96

0.29

-

-

China Merchants Bank

0.7

43.80

0.08

-

-

LoneStar/Relius

-

-

-

758.77

1.27

Principal Commercial

-

-

-

460.60

0.77

RAIT RBS

-

-

-

342.37

0.57

Bancorp Bank

-

-

-

314.36

0.52

Basis Real Estate

-

-

-

74.25

0.12

TOTALS

1,743.00

57,800.48

 

59,941.31

 

Lenders taking part in the CMBS market are being challenged by shrinking profit margins. For instance, the weighted average profit margin for conduit deals that priced this year and had either a horizontal or vertical risk-retention structure was 1.2 percent. The comparable margin for deals that priced last year through September was 3.82 percent.

And a major driver of lending activity - investment-sales volume - remains lackluster, with Real Capital Analytics reporting $241.8 billion of total volume for the first half. While that was up 6.6 percent from the same period a year ago, it remains well below levels reached in previous years. In 2015, for instance, first-half sales volume totaled $275.4 billion.

What's more, nearly 30 percent of the sales activity that took place during the first half involved apartment properties, lending against which is overwhelmingly dominated by the housing-finance agencies.

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





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Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

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

 

cppichart FP

 

 

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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