Earlier this month I set out my CMBS predictions for 2016 in the Investment Adviser (Broadening the scope of CMBS loan issuance), where I predicted that macro-economic conditions would continue to challenge the re-establishment of CMBS as financing tool for European commercial real estate (CRE). Indeed, the first few weeks of the year
CMBS Issuance
CMBS 2.0 – the Lyrical Dancer
By Iain Balkwill on
Given that it is coming up to a year since I posted a blog (CMBS – it’s time to dance to the beat!) in which I surmised that “I don’t just want to see CMBS hit the dance floor – I want to see it win a contest!”, now would seem…
The renaissance of European multi-loan CMBS
By Iain Balkwill on
The European CMBS 2.0 market was launched in June 2011 and in the years that have since followed, twenty four public rated deals have so far hit the market. Given that only seven of these deals have featured multiple loans and the smallest loan securitised prior to November 2015 had a balance of €55 million…
Agency CMBS – the perfect pill for a large loan CMBS pricing headache!
By Iain Balkwill on
The recent below par pricing of two Goldman Sachs arranged CMBS deals demonstrate the potential perils of CMBS as a distribution tool for CRE debt. Indeed, these two deals bring into stark focus the pricing quandary that currently confront many conduit lenders. On the one hand, lenders are having to competitively price loans in a…
Agency CMBS – the sophisticated tool for raising cheaper commercial real estate debt!
By Iain Balkwill on
As was the case prior to the global financial crisis, the current driver for all new European CMBS deals stems from the adoption by investment banks of the originate-to-distribute business model for financing commercial real estate assets. This trend is showing no sign of abating in the CMBS 2.0 era with twenty of the twenty…
CMBS 2.0 IN FOCUS: Liquidity Facilities – the wild child of CMBS 2.0
By Iain Balkwill on
In the second of a series of blogs, in which we address the evolution of CMBS structural features, we will consider the most (arguably) integral form of credit enhancement for any CMBS deal, the liquidity facility.
Liquidity facilities are structured as 364 day committed revolving credit lines that can be drawn by a CMBS issuer…