Commercial Real Estate Finance

Posts Tagged ‘securitization’

Commercial Real Estate Week In Review for the Week of August 14-20

- Will the Federal Reserve, FDIC, SEC and Commodity Futures Trading Commission really be transparent in the Dodd-Frank Act?

- How much of an impact is the current housing market complicating things for Fannie Mae and Freddie Mac?

- Bank of America is considering paring its stake in  BlackRock Inc., citing its not a core asset.

- The potential shake-up in ownership of bookseller giant Barnes & Noble has shopping center landlords nervous.

- Delinquent construction loans have reached a record level in the U.S.
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Commercial Real Estate Videos of the Week

Can commercial real estate recover without securitization?

Chairman of the House Financial Services Committee Barney Frank Discusses Financial Regulation

Want to refinance your home to take care of historically low interest rates?  Hold your horses. Read the rest of this entry »

Editors Note: This post is the second in a three day, three person opinion on the aftermath of the Stuyvesant Town/Peter Cooper Village deal going kaput. Yesterday Dave Jacobs wrote about its effect on the capital stack. Today Rich Weidel examines the effect on the CMBS market. Tomorrow, Dave Weinstein will explore the world of risk/reward. Stay tuned and enjoy!

Stuyvesant Town, bought for $5.4 billion in 2006 is now valued at $1.8 billion. After reading that Tishman is walking away from Stuyvesant Town and the $4.4 billion of debt piled up against the property, I’m wondering if CMBS defaults are going to become the next sub-prime mortgages. Is this the bottom, or just the beginning? Will CMBS defaults rip through the structured products market? It seems that we are at a crossroads, with arguments and predictions being made both ways. Regardless of what your gut tells you, the following chart from PREI shows the problem: Read the rest of this entry »

This post has been contributed by Richard Weidel, a  Masters in Real Estate Investment Banking and Private Equity graduate student at Cornell University.

An interesting development is in the 11/6/2009 Commercial Mortgage Alert (CMA), headlined “JP Morgan Resumes CMBS Loan Program”. The article states that J.P. Morgan has restarted its conduit lending program, and plans to restart  securitization next year. With the debt markets still frozen, and a looming commercial debt maturity balloon coming in 2010-2011, new securitizations could offer much needed liquidity to a tight CRE market. While JP has indicated that it plans to only originate fairly conservative, fixed-rate loans for securitization, this could be the impetus needed to improve investor confidence in CRE and bring money back to the debt markets.

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There has been much talk, and many machinations of the current “Banking Bill” being drafted by Barney Frank in Congress. After many Wall Street banks have emerged from the credit crisis largely unscathed, mostly due to the government aid they received through bailout money, Main Street has been  in an uproar, and Congress plans to do something about it.  Mainly, they are attempting to make the cost of Wall Street banks doing business a lot higher. So what’s in this bill, and is is good for the economy?  There are three main points in this bill that will be the focus of this article. Let’s take a look. Read the rest of this entry »

In a piece originally titled “10 Bubbles in the Making,” Lawrence Delevingne, a writer for The Business Insider examines 10 current economic phenomena that he thinks are poised for fallout in coming years.  While there are probably other less obvious economic issues waiting to burst, Lawrence has done a good job of picking out some main-stream topics that have gotten a lot of press of late.  We thought we’d take a moment to offer our 2 cents in response to Lawrence’s ideas considering we have blogged on several of these topics in the last couple of months.

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Dovetailing on last friday’s post regarding the collapse of the CMBS market, and who, if anybody is going to pick up the slack, I thought it would be prudent to examine the current thoughts about what the fallout might be if there is no securitization market revival. At the same conference I denoted in Friday’s post, a different question was posed:

Will there be a securitization market revival, or is the foreseeable future going to revert back towards balance sheet lending?
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