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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