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

Wednesday, 04 October 2017

Goldman Sachs Tops Ranking of Loan Contributors

Goldman Sachs has contributed 106 loans with a balance of $8 billion to CMBS during the first nine months of the year, putting it atop a ranking of loan contributors to the sector. It outdid JPMorgan Chase Bank, which had contributed 91.4 loans totaling $7.6 billion, for a 12.7 percent share.

Commercial Real Estate Direct Staff Report

Goldman Sachs has contributed 106 loans with a balance of $8 billion to CMBS during the first nine months of the year, putting it atop a ranking of loan contributors to the sector.

It outdid JPMorgan Chase Bank, which had contributed 91.4 loans totaling $7.6 billion, for a 12.7 percent share. But JPMorgan is nipping at its heels. It held a 9.8 percent share of the market going into July and has been able to increase that substantially. JPMorgan, meanwhile, had topped a ranking of bookrunners during the period.

Deutsche Bank, which held the number two spot in the loan contributor ranking at the half, slipped a slot to third place, with a 12.5 percent share. That compares with its 12.8 percent share at the half.

Top Loan Contributors
Domestic Private-Label CMBS

 

9Mos2017

9Mos2016

Lender

#Loans

Vol
$mln

Mkt
Shr%

Vol
$mln

Mkt
Shr%

Goldman Sachs

105.85

7,966.71

13.29

4,977.80

11.20

JPMorgan Chase Bank

91.35

7,620.22

12.71

5,600.62

12.60

Deutsche Bank

143.20

7,463.89

12.45

4,816.20

10.84

Citigroup

151.25

6,134.83

10.23

4,318.91

9.72

Morgan Stanley

111.87

5,654.73

9.43

2,574.32

5.79

Wells Fargo Bank

189.86

4,189.46

6.99

2,520.29

5.67

Barclays Bank

80.64

3,241.23

5.41

1,762.84

3.97

Bank of America

114.80

3,128.59

5.22

2,376.66

5.35

Natixis

74.60

1,935.19

3.23

1,465.43

3.30

Credit Suisse

17.70

1,845.84

3.08

873.28

1.96

UBS

99

1,501.97

2.50

1,592.56

3.58

Rialto

98

1,186.81

1.98

1,458.06

3.28

Societe Generale

43.45

1,018.09

1.70

714.19

1.61

Starwood Property Trust

81.73

955.60

1.59

1,224.10

2.75

Ladder Capital Finance

67

771.36

1.29

685.72

1.54

Lonestar

30

758.77

1.27

506.26

1.14

Silverpeak Real Estate Finance

46.50

699.75

1.17

621.01

1.40

Benefit Street Partners

42

620.46

1.04

818.81

1.84

Jefferies LoanCore

23

486.83

0.81

443.27

1.00

Principal Commercial Capital

20

460.60

0.77

380.73

0.86

KeyBank

34

442.07

0.74

459.57

1.03

RAIT Funding

23

342.37

0.57

21.38

0.05

CIBC

27

318.06

0.53

194.40

0.44

Bancorp Bank

15

314.36

0.52

39.45

0.09

Cantor Commercial Real Estate

18

304.92

0.51

2,019.26

4.54

NCB FSB

80

260.15

0.43

308.60

0.69

C-III Commercial Mortgage

25

145.07

0.24

231.99

0.52

Blackstone Mortgage Trust

0.2

100.00

0.17

-

-

Basis Real Estate Capital

9

74.25

0.12

125.51

0.28

BNY Mellon

-

-

-

488.38

1.10

MC-Five Mile Capital

-

-

-

182.71

0.41

Bank of China

-

-

-

110.00

0.25

KGS-Alpha Real Estate Capital

-

-

-

74.73

0.17

Redwood Commercial Mortgage

-

-

-

72.23

0.16

Liberty Island Group

-

-

-

67.91

0.15

Walker & Dunlop

-

-

-

55.85

0.13

Freedom CRE

-

-

-

9.53

0.02

TOTAL

1,863

59,941.31

 

44,444.15

 

Goldman had led the loan-contributor ranking for the first half, with a 16.2 percent share, and contributed another 35.6 loans totaling $2.5 billion to CMBS deals during the third quarter. A total of 97 loans, with a balance of $3.1 billion were contributed to conduit deals, while the remaining 8.9 loans, totaling $4.9 billion, were contributed to single-borrower deals. The latter included its participation in the $1.3 billion financing of a portfolio of cold-storage facilities owned by Lineage Logistics that was securitized through Cold Storage Trust, 2017-ICE3, and the $1 billion of financing against Chicago's Willis Tower, which was securitized through Chicago Skyscraper Trust, 2017-SKY.

JPMorgan, meanwhile, contributed 20.3 loans totaling $4.3 billion to the sector during the latest three months, 30 percent more than it did during the first half of the year.

The number of lenders that are regularly contributing to the CMBS market continues to decline, with only 29 participating so far this year. While that's up from the 26 that contributed loans to the market during the first half, its seven fewer than last year. And Macquarie Group has decided that it's no longer interested in the CMBS lending business and has pulled out of its lending venture with Principal Real Estate Investors. But Principal, which has participated in the business for more than a decade, says it's on the hunt for a new capital partner.

Meanwhile, the securitized lending business remains heavily concentrated, with issuing banks - investment banks that have lending operations - controlling a big chunk of it. The top four contributors - Goldman, JPMorgan, Deutsche and Citi - were responsible for nearly 50 percent of all CMBS loan volume so far this year.

That would beg the question: why would other lenders participate in the business? Because it's usually quite profitable. Rialto Mortgage Finance, which has been writing loans for CMBS since 2010 and doesn't operate its own shelf, generated a margin of 5.3 percent from the $236 million of loans it contributed during the three months through the end of August. Of course, market conditions dictate margins, meaning they're not guaranteed. But Rialto has reported only one quarter in which its conduit lending wasn't profitable.

While most other lenders don't typically report their profit margins, those data are reported for certain CMBS transactions. Conduit deals this year have been quite profitable, generating gross margins of between 2.54 percent to a whopping 6.35 percent. Some single-borrower deals, however, haven't been as generous. Public documents indicate that some deals actually generated small losses before fees.

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





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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

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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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