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Friday, 04 January 2019

JPMorgan Dominates CMBS Bookrunner, Loan Contributor Rankings

JPMorgan Chase & Co. dominated the domestic, private-label CMBS market last year, taking top honors among bookrunners as well as loan contributors. The company's investment banking operation received credit as bookrunner for 17.7 deals totaling $10.6 billion, for a 13.9 percent share of the $76.1 billion market. Its lending business, meanwhile, contributed $9.4 billion of loans to CMBS deals, or 12.4 percent of the $76.1 billion that was securitized.

Commercial Real Estate Direct Staff Report

JPMorgan Chase & Co. dominated the domestic, private-label CMBS market last year, taking top honors among bookrunners as well as loan contributors.

The company's investment banking operation received credit as bookrunner for 17.7 deals totaling $10.6 billion, for a 13.9 percent share of the $76.1 billion market. It had dominated the market all year, and topped Deutsche Bank, which received credit for 13.7 deals totaling $9.9 billion, and last year's bookrunner champ, Goldman Sachs, which got credit for running the books on 15.5 deals totaling $8.5 billion.

The bookrunner ranking counts only private-label CMBS deals - those backed solely by non-agency mortgages. It divvies up credit proportionally among all of a deal's bookrunners, based on information gleaned from offering materials.

Top CMBS Bookrunners - Domestic, Private-Label Issuance

 

2018

2017

Investment Bank

#Deals

Bal $mln

MktShr%

#Deals

Bal $mln

MktShr%

JPMorgan Securities

17.68

10,608.13

13.94

14.52

10,968.11

12.70

Deutsche Bank

13.70

9,930.02

13.05

12.8

9,879.74

11.44

Goldman Sachs

15.48

8,476.68

11.14

18.09

11,819.34

13.68

Citigroup

9.48

8,120.96

10.67

12.04

10,012.71

11.59

Wells Fargo Securities

12.17

7,567.17

9.94

14.27

9,936.06

11.50

Morgan Stanley

10.79

7,538.21

9.90

12.86

9,536.77

11.04

BofA Merrill Lynch

7.10

5,509.86

7.24

8.75

5,910.78

6.84

UBS

6.37

4,475.55

5.88

5.67

4,203.40

4.87

Barclays Capital

6.77

4,357.03

5.72

6.66

5,269.62

6.10

Credit Suisse

5.99

3,522.61

4.63

9.21

3,807.42

4.41

Natixis

9.97

2,945.34

3.87

3.94

1,960.81

2.27

Societe Generale

2.01

1,535.91

2.02

1.77

1,274.72

1.48

Cantor Fitzgerald

2.51

1,391.07

1.83

1.91

1,324.29

1.53

Performance Trust Capital

1.00

132.30

0.17

     

Jefferies

-

-

-

0.53

486.65

0.56

TOTAL

121.00

76,110.85

 

123

86,390.42

 

JPMorgan's bookrunner prowess was the direct result of its dominance in a ranking of loan contributors to the CMBS market. The company's bank unit contributed nearly 140 loans with a balance of $9.4 billion to CMBS deals, or 12.4 percent of all loans, by balance, that were securitized. That volume was down 7 percent from the bank's 2017 activity. Nonetheless, it outperformed the overall market, where total volume was down nearly 12 percent.

The bank participated in 18 of the year's 75 single-borrower transactions, contributing a total of $6 billion, which comprised 17 percent of the total $35.7 billion of single-borrower issuance. Its conduit contributions totaled $3.5 billion, or 9 percent of the issuance total.

Top Loan Contributors to Private-Label CMBS

Loan Contributors

2018

2017

 

#loans

Bal $mln

MktShr%

#loans

Bal $mln

MktShr%

JPMorgan Chase Bank

139.87

9,442.39

12.41

117.70

10,114.10

11.80

Deutsche Bank

197.62

9,010.55

11.84

198.50

9,690.00

11.30

Goldman Sachs

106.83

8,665.70

11.39

146.90

11,719.30

13.60

Citibank

218.07

7,314.00

9.61

199.10

8,088.20

9.40

Morgan Stanley

159.47

5,838.67

7.67

166.20

8,539.80

9.90

Wells Fargo Bank

190.77

5,468.74

7.19

260.10

6,071.50

7.10

Bank of America

105.75

4,843.48

6.36

161.00

5,165.50

6.00

Barclays Bank

94.65

3,916.22

5.15

124.70

4,917.40

5.70

Natixis

73.88

3,206.98

4.21

96.10

2,507.90

2.90

Credit Suisse

23.03

2,914.68

3.83

28.50

3,079.80

3.60

UBS Real Estate Securities

141.00

2,444.22

3.21

148.40

2,497.40

2.90

Starwood Mortgage Finance

109.00

1,717.95

2.26

117.70

1,534.10

1.80

Societe Generale

58.73

1,576.91

2.07

55.50

1,269.70

1.50

Argentic Real Estate Finance

105.50

1,565.64

2.06

86.50

1,263.60

1.50

Cantor Commercial Real Estate

67.75

1,563.96

2.05

81.00

1,326.20

1.50

Ladder Capital Finance

103.00

1,304.25

1.71

114.00

1,476.10

1.70

Rialto Mortgage Finance

100.00

1,272.67

1.67

138.00

1,658.70

1.90

KeyBank

75.50

1,105.23

1.45

58.00

921.70

1.10

Jefferies LoanCore

25.00

643.72

0.85

23.00

486.80

0.60

Blackstone Mortgage Trust

0.50

517.50

0.68

0.20

100.00

0.10

Benefit Street Partners

34.00

446.63

0.59

52.00

777.00

0.90

NCB FSB

100.00

400.05

0.53

88.00

288.40

0.30

CIBC World Markets

40.00

359.26

0.47

27.00

318.10

0.40

C-III Commercial Mortgage

57.00

253.13

0.33

44.00

217.00

0.30

ReadyCap

50.00

164.96

0.22

0.00

0.00

0.00

Basis Real Estate

7.00

109.60

0.14

9.00

74.30

0.10

Bank of China

0.07

43.80

0.06

0.00

0.00

0.00

Lonestar/Relius

0.00

0.00

0.00

30.00

758.80

0.90

Principal Commercial

0.00

0.00

0.00

20.00

460.60

0.50

RAIT Financial Trust

0.00

0.00

0.00

23.00

342.40

0.40

Bancorp Bank

0.00

0.00

0.00

15.00

314.40

0.40

Deutsche and Goldman were behind it in the latest loan contributor ranking, with Deutsche funneling nearly 198 loans with a balance of $9 billion, which also was down 7 percent from the year before. Goldman contributed 106.8 loans totaling $8.7 billion, down 26 percent from last year.

Both lenders also relied on their large-loan prowess. Deutsche, for instance, contributed $4.4 billion to such deals, while Goldman contributed $6.3 billion. So, the top three loan contributors accounted for 46 percent of the collateral in the year's single-borrower transactions.

Among the major loan contributors, meaning those that contributed more than $1 billion of loans to the sector, Natixis saw the greatest increase in activity - 28 percent from 2017 to $3.2 billion. It too was active in the single-borrower business, which accounted for roughly two-thirds of its originations.

Meanwhile, both Societe Generale and Argentic Real Estate Finance also had outsized increases - 24 percent - in their loan contribution activity. Argentic's activity was impressive in that all of it involved conduit loans. The company is a five-year old shop backed by Silverpeak Real Estate Partners and Elliott Management. A total of 27 lenders participated in the CMBS market last year, down two from the previous year.

Top Managers of CMBS - Domestic, Private-Label Issuance

2018

2017

Investment Bank

#Deals

Bal$mln

MktShr%

#Deals

Bal$mln

MktShr%

Drexel Hamilton

41

36,385.54

47.81

22

21,929.60

25.40

Academy Securities

39

34,473.94

45.29

34

30,876.20

35.70

Deutsche Bank

30

23,296.30

30.61

33

26,822.90

31.00

Citigroup

23

21,471.34

28.21

34

29,346.20

34.00

JPMorgan Securities

30

21,278.25

27.96

27

23,045.00

26.70

Wells Fargo Securities

21

15,319.57

20.13

26

19,798.10

22.90

Morgan Stanley

20

15,195.12

19.96

27

23,267.60

26.90

BofA Merrill Lynch

15

14,699.58

19.31

18

15,752.10

18.20

Goldman Sachs

22

13,542.04

17.79

26

18,563.90

21.50

Barclays Capital

17

12,199.42

16.03

19

16,441.30

19.00

Cantor Fitzgerald

14

10,337.89

13.58

6

4,637.50

5.40

Natixis

19

8,597.09

11.30

16

11,442.10

13.20

Williams Group

7

7,901.78

10.38

0

0.00

0.00

Credit Suisse

16

6,840.41

8.99

13

5,858.00

6.80

UBS Securities

9

6,536.49

8.59

14

10,495.50

12.10

KeyBank

6

5,147.74

6.76

5

4,035.50

4.70

CIBC World Markets

6

4,592.77

6.03

3

2,676.00

3.10

Mischler Financial

2

1,924.84

2.53

0

0.00

0.00

Jefferies

1

1,006.08

1.32

1

916.50

1.10

Bancroft Capital

1

796.81

1.05

0

0.00

0.00

Performance Trust Capital

1

132.30

0.17

0

0.00

0.00

CastleOak Securities

0

0.00

0.00

1

644.70

0.70

A ranking that gives full credit to every manager on a deal had Drexel Hamilton on top, with 41 deals totaling $36.4 billion, or 47.8 percent of the year's issuance. It was followed closely by Academy Securities, with 39 deals totaling $34.5 billion, for a 45.3 percent share of the market.

Both firms were founded and are led and staffed by military veterans. Hamilton has its roots in the Wall Street Warfighters Foundation, a nonprofit that was founded by Marine Corps General Peter Pace, who served as the 16th chairman of the Joint Chiefs of Staff, and Vietnam Veteran Lawrence K. Doll, who sought to develop a program to train and prepare wounded military veterans for careers in the financial services industry.

Academy, meanwhile, was formed in 2009 by Chance Mims, a former U.S. Naval officer. Its president is Phil McConkey, a graduate of the U.S. Naval Academy best known for his years as a wide receiver for the New York Giants professional football team.

Well behind Drexel Hamilton and Academy is Deutsche, which was manager on 30 deals totaling $23.3 billion, and Citigroup, with 23 deals totaling $21.5 billion.

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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