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Wednesday, 25 March 2020

Barry Sternlicht Urges Suspension of Mark-to-Market Rules

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Commercial Real Estate Direct Staff Report

Barry Sternlicht, co-founder and chairman of Starwood Capital Group, said mark-to-market rules, which have a cascading affect on asset values, ought to be suspended.

In an interview on CNBC's Squawk Box program yesterday, he said margin calls, which are triggered when assets securing certain credit facilities fall in value, have resulted in "people scrambling to come up with liquidity."

"What you need is a freeze on mark-to-market in real estate markets," he said.

At least four mortgage REITs - TPG Real Estate Finance Trust Inc.Invesco Mortgage Capital Inc., AG Mortgage Investment Trust and New York Mortgage Trust - each announced that they were hit with margin calls and struggled to meet them.

Each relied on repurchase credit facilities to finance investments in real state securities, including private-label...





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“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • Subject: CMBS - non-deal specific (CMBS-G), Commercial MBS (CMBS), REIT Credit Line (LINE), REIT Unsecured Debt (UNSEC), REITS -general (REITS), Stock/Equity Offerings (IPO)
  • Private: Yes
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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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