JPMorgan dethrones Deutsche as top CMBS bookrunner

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

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

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Deutsche [TRDataCustom], 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