Four commercial mortgage backed securities (CMBS) have been issued in the US this week, worth an aggregate $3.24bn, in a frenzy of activity reminiscent of the pre-crash heydays.
According to CoStar Group US news service, new players are jumping into the arena for the first time, while loan-to-values are returning to their old highs, with low debt service coverage and interest-only loans.
The mood across Europe in commercial real estate finance markets, and at last week’s Global ABS 2011 conference in Brussels was much more sedate.
The largest of the deal is issued by Deutsche Mortgage & Asset Receiving Corp, DBUBS 2011-LC2, and is one of the largest issued in the last 12 months. The trust balance is a whopping $2.14bn, according to CoStar Group’s report, and is backed by loans originated by German American Capital Corp., UBS Real Estate Securities, and Ladder Capital Finance.
All of the loans were originated within the past 12 months. All loans make debt service payments at a fixed rate with a weighted average interest rate of 5.522%. Interest rates range from 4.258% to 6.643%.
The pool consists of 67 loans secured by 132 commercial properties. The largest loan is $219.8m or 10.3% of the pool balance, and the 10 largest loans represent 56.6% of the pool balance. The average loan size is $32.0m (1.5% of the pool balance).
For the full details and the rating agencies analysis, see the full story here.
CoStar Finance 