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

Friday, 01 November 2019

CMBS Loan Defeasance Volume Already Tops All of Last Year

The volume of CMBS loans that have been defeased, or replaced by government securities, already has exceeded all of last year's volume. Through September, 694 loans with a balance of $10.89 billion have been defeased. That compares with the $10.88 billion volume for all of last year. Volumes will keep climbing, thanks to continued low interest rates.

Commercial Real Estate Direct Staff Report

The volume of CMBS loans that have been defeased, or replaced by government securities, this year already exceeded all of last year's volume.

According to Fitch Ratings, 694 loans with a balance of $10.89 billion in CMBS deals that it had rated and were issued since the Great Financial Crisis had been defeased by the end of September. That compares with the 620 loans totaling $10.88 billion that were defeased in all of last year.

Defeasance is the process through which property owners can retire their securitized mortgages, which generally are restricted from prepayment, before their maturity. It involves the replacement of a loan's collateral with government securities that mimic the loan's cash flow through the time it becomes open to prepayment.

Property owners generally turn to defeasance in order to take advantage...


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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





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