Banks prepare $4 billion in CMBS

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
229 West 43rd Street in New York and Two Westlake Park in Texas. New York and Texas are the states with the largest exposure to loans with appraisal reductions. (Photos via iStock; Google Maps; JLL)
What appraisal reductions mean for future losses on CMBS loans
What appraisal reductions mean for future losses on CMBS loans
Rosemary Vrablic with clients Jared Kushner and President Donald Trump (Getty, iStock)
Trump’s longtime banker resigns from Deutsche Bank
Trump’s longtime banker resigns from Deutsche Bank
Deutsche Bank Christiana Riley, chief executive for Deutsche in the Americas (iStock; Getty)
Deutsche Bank could move half its NY staff to smaller hubs
Deutsche Bank could move half its NY staff to smaller hubs
President Donald Trump, Deutsche Bank CEO of Americas Christiana Riley and Manhattan District Attorney Cy Vance (Getty)
Manhattan DA questions Deutsche Bank over Trump
Manhattan DA questions Deutsche Bank over Trump
The Walden Galleria in Buffalo, New York (Photo via Visit Buffalo Niagara)
CMBS market faces staggering losses even with vaccine hopes
CMBS market faces staggering losses even with vaccine hopes
55-15 Grand Avenue, Queens; Phil A. Belling of LBA Realty; Jamie Dimon of JPMorgan Chase (Getty, RXR/BL Architects)
LBA lands $316M loan for Amazon warehouse in Maspeth
LBA lands $316M loan for Amazon warehouse in Maspeth
Issuance of single-asset/single-borrower (SASB) loans is likely to increase in 2021. Major assets like One Manhattan West, Hudson Pacific’s Hollywood studio portfolio, and the MGM Grand & Mandalay Bay were financed with SASB deals this year. (Photos via SOM, Shimahara Illustration, and iStock)
Here’s what 2021 has in store for the CMBS market
Here’s what 2021 has in store for the CMBS market
Behind Deutsche Finance’s American buying binge
Behind Deutsche Finance’s American buying binge
Behind Deutsche Finance’s American buying binge
arrow_forward_ios

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

Loading...