JPMorgan dethrones Deutsche as top CMBS bookrunner

Amid 25% drop in market, Morgan holds relatively steady and increases market share

TRD New York /
Dec.December 19, 2016 09:30 AM

JPMorgan’s James Dimon and Deutsche Banks’s John Cryan

For the first time in five years, there’s a new king atop of the CMBS mountain.

JPMorgan was the most active underwriter this year with $12 billion worth of U.S. transactions, edging out Deutsche Bank and ending its five-year reign as the top CMBS bookrunner, according to Commercial Mortgage Alert.

While U.S. CMBS issuance is on track to dip to $76 billion this year – down 25 percent from $101 billion last year – JP Morgan was able to hold relatively steady with just an 8 percent drop in volume. That helped it increase its market share from 13 percent last year to 15.9 percent in 2016.

As reported last week, JPMorgan’s CMBS trading desk has also quietly emerged as a major construction lender in the Greater New York City area, taking a leading role in issuing at least $2.7 billion in loans in recent years. The ramp-up comes as the bank’s commercial banking unit grows more cautious on real estate financing.

Deutsche TRData LogoTINY, meanwhile, fell to third place in the rankings, dropping 45 percent from last year to $9.7 billion. Its market share tanked from 17.5 percent to 12.9 percent, partly from its decision to lead fewer multi-contributor conduit deals.

Wells Fargo lapped Deutsche to claim second place, issuing $10.6 billion.

With activity outside the U.S. at tepid levels, JP Morgan is also expected to dethrone Deutsche as the top global underwriter.

Non-U.S. issuance totaled $1.7 billion this year, down from $5.2 billion in 2015 and a world away from the $96.2 billion issued at the peak of the market in 2006.

A panel of professionals at the start of the year predicted that volume would actually climb this year by 9 percent to $110 billion. [CMA] – Rich Bockmann


Related Articles

arrow_forward_ios
The Daily Digest - Tuesday

WeWork bonds hit low, new LLC legislation went farther than intended: Daily digest

Jerry Rotonda (Credit: LinkedIn)

Former Deutsche Bank exec has defaulted on $3M loan, lawsuit says

Clockwise from top left: The Watchtower building at 25 Columbia Heights, Long Island University at 1 University Plaza, The Rheingold at 10 Montieth Street and 871 Bushwick Avenue in Brooklyn (Credit: Wikipedia and Google Maps)

These were the top 10 outer borough loans last month

The TRD weekly global digest

Banks see uptick in mortgages, but remain wary ahead of potential Fed interest rate cut

Related CEO Jeff Blau, Deutsche Bank CEO Christian Sewing, and Time Warner Center at 10 Columbus Circle (Credit: Getty Images and Wikipedia)

Deutsche Bank shrinks footprint at future Columbus Circle home amid global downsizing

Have no fear? Debt brokers say Deutsche Bank quelled concerns about real estate lending

Clockwise from top left: 54 Crown Street, 451 10th Avenue, 46-09 69th Street and 270 Park Avenue (Credit: Google Maps)

The top 10 biggest real estate projects coming to NYC

arrow_forward_ios