Commercial Real Estate Finance

Posts Tagged ‘S&P’

1) What can we learn from Goldman Sachs?

Ignoring, entirely, the debate surrounding the series of accusations leveled at Goldman Sachs, we can still learn something useful from their circumstances:  Pay attention to what write on email!  I’ll remind you of an oft repeated rule of thumb: consider, before pressing send, what your email might look like as a headline in the Wall Street Journal.

Read the rest of this entry »

If you enjoyed this post, make sure you subscribe to my RSS feed!

Where are we?

We need a little review to fully understand this article in Bloomberg about recent moves in the short end of the Treasury curve.

Basically, the markets reversed course regarding near tern interest rates, deciding the Fed will be on hold a bit longer after all.  With the 10 year TIP spread approaching 250bps, however, we have to ask, ‘what sort of inflation expectations warrant their prompt attention?’  As I’ve mentioned before, those of you with LIBOR floaters on the line should be following this macro story closely.

Read the rest of this entry »

If you enjoyed this post, make sure you subscribe to my RSS feed!

Last week, A Warren Buffet-led group struck a deal to acquire Capmark Financial Group Inc.’s mortgage banking business . A newly formed entity owned by Buffet’s Berkshire Hathaway Inc. and Leucadia National Corp. was given a put option to purchase Capmark’s North American servicing and mortgage banking businesses. Capmark operates three core business lines: lending and mortgage banking, investments and funds management, and servicing. The latter of which is, and has been drastically adversely affected by the poor performance of the first two. Jeff Zaun from S & P remarked recently, “We expect Capmark either to enter Chapter 11 bankruptcy proceedings or to negotiate a distressed exchange outside of bankruptcy, which most likely would affect most of its debt. We will consider either of these events to be a default.” And Buffet’s bid reflects either possibility, offering $490M, or $415M if Capmark files for bankruptcy. So why do I expect Capmark to choose bankruptcy?

Read the rest of this entry »

If you enjoyed this post, make sure you subscribe to my RSS feed!

The Week of August 15-21

- Abercrombie & Fitch may be losing its shirt(s)

- A 1200 unit apartment portfolio on Long Island obtained a $77M refi.

- The Fed Treasury Announced a TALF extension.

- Stalin would never let this happen with $1.5 billion.

- Here comes Chinese money…again…this time to buy U.S. mortgages through PPIP. Read the rest of this entry »

If you enjoyed this post, make sure you subscribe to my RSS feed!

The Week of August 8-14

- Bernanke, or not to Bernanke? That is the question.

Where will funds and REITs turn to with little available private capital? The public, of course.

- Freddie Mac reported a quarterly profit.

- The largest deal of 2009 in the Pittsburgh region went down this week to the tune of $90M.

- S&P lowered its ratings for 19 different classes of Chase CMBS. Read the rest of this entry »

If you enjoyed this post, make sure you subscribe to my RSS feed!