Banks prepare $4 billion in CMBS

TRD New York /
Jan.January 05, 2011 09:29 AM

Deutsche Bank, UBS and JPMorgan Chase are preparing the year’s first bond sales tied to commercial property loans, sources told Bloomberg News. Deutsche Bank and UBS are partnering to issue as much as $2.5 billion in commercial mortgage-backed securities linked to loans on office buildings, shopping malls and hotels in what would be the largest offering of its kind since the market froze in June 2008. JPMorgan plans to sell $1.5 billion in similar debt. “CMBS new issue still offers attractive returns relative to other fixed-income products,” said Andrew Solomon, a managing director at Angelo Gordon. “Even with new issuance picking up steam, the net supply of CMBS is still shrinking while demand is increasing. I’m pretty sure that means spreads are going to continue tightening.” Both the Deutsche Bank and UBS transaction and the JPMorgan offering are slated for next month. Other banks lining up debt sales linked to commercial real estate include Morgan Stanley, Bank of America, Goldman Sachs, Royal Bank of Scotland and Wells Fargo. [Bloomberg]


Related Articles

arrow_forward_ios
Mall of America in Minnesota (Farragutful via Wikipedia)

Mall of America falls behind on $1.4B mortgage

Mall of America falls behind on $1.4B mortgage
Hudson’s Bay CEO Richard Baker (Credit: Getty; iStock)

“Corporate shell game”: Special servicer says Hudson’s Bay undermined $850M loan

“Corporate shell game”: Special servicer says Hudson’s Bay undermined $850M loan
Some of the world’s biggest banks — including Wells Fargo and Deutsche Bank — have engaged in a systematic fraud that allowed them to award borrowers bigger loans than were supported by their true financials (Credit: Alex Gottschalk/DeFodi Images; MANJUNATH KIRAN/AFP via Getty Images)

Whistleblower: Wall Street Has Engaged in Widespread Manipulation of Mortgage Funds

Whistleblower: Wall Street Has Engaged in Widespread Manipulation of Mortgage Funds
JPMorgan Chase's Jamie Dimon and Fortress Investment Group's Wes Edens (Dimon via Mark Wilson/Getty Images; Edens via Scott Olson/Getty Images)

JPMorgan, Fortress are the latest firms to build up war chests

JPMorgan, Fortress are the latest firms to build up war chests
A Wework location in Beijing on May 6, 2020 (Credit: Wang Zhao/AFP via Getty Images)

WeWork’s rental woes slam CMBS market

WeWork’s rental woes slam CMBS market
American Homes 4 Rent CEO David Singelyn and  JPMorgan CEO Jamie Dimon (Credit: Singelyn via Cal Poly Pomona; Dimon via Alex Wroblewski/Getty Images)

JPMorgan showers single-family rental partnership with cash

JPMorgan showers single-family rental partnership with cash
(Credit: iStock)

CMBS debt relief inquiries fall in late April, but worst is yet to come, new report says

CMBS debt relief inquiries fall in late April, but worst is yet to come, new report says
Carl Icahn (Credit: Icahn by Neilson Barnard/Getty Images for New York Times; iStock; Matthew D. Wilson/Wikimedia Commons)

Investors who shorted malls stand to make out big

Investors who shorted malls stand to make out big
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...