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

Tuesday, 14 March 2017

MassMutual Circles First CMBS B-Piece

Massachusetts Mutual Life Insurance Co. is making its first CMBS B-piece investment. It moved into the business last year by hiring Doug Cooper, who previously built out Allied Capital Ltd.'s B-piece business. The insurer has circled the most subordinate classes of JPMDB Commercial Mortgage Securities Trust, 2017-C5, and is shooting for a 13.9 percent return.

Commercial Real Estate Direct Staff Report

Massachusetts Mutual Life Insurance Co. is making its first CMBS B-piece investment. It's circled the most subordinate classes of JPMDB Commercial Mortgage Securities Trust, 2017-C5, which is expected to price later this week or early next.

The transaction is backed by $1 billion of loans contributed by Deutsche Bank and JPMorgan Chase Bank. MassMutual's Barings Real Estate Advisers, formerly known as Cornerstone Real Estate Advisers, is buying subordinate bonds that would equal 5 percent of the deal's market value, qualifying those as its horizontal risk-retention piece. As such, Barings won't be able to hedge, finance or sell the securities for at least five years.

MassMutual was seen moving into the B-piece business last summer, when it hired Doug Cooper as managing director to build out a B-piece investing platform. Cooper previously had developed American Capital Ltd.'s B-piece business. And before that was with Allied Capital Corp. and Criimi Mae Inc., two other dominant B-piece players from the legacy CMBS era.

For its initial investment, MassMutual is shooting for a 13.9 percent yield....





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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

 

MOODY'S/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

 

 

 

REITCafe

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