Year's First CMBS Deal Arrives
RBS's $500 Million Offering Drawn From Refinanced Loans
The first commercial-mortgage-bond deal of the year is expected to be marketed to investors this week, according to sources familiar with the transaction.
The offer is seen as a sign of investors' willingness to tolerate risk, despite the deteriorating fundamentals of commercial real estate, as long as a deal is accompanied by adequate protection and conservative underwriting.
Royal Bank of Scotland Group, through its real-estate advisory business, will offer a $500 million security backed by existing loans that were refinanced and underwritten to stricter guidelines, the sources said.....
Non-GSE backed mortgages to hit market
Redwood Trust Inc. is trying to reopen the market for securities backed by home mortgage loans without any government backing, The Wall Street Journal reported. The Mill Valley, Calif., mortgage-investment manager may launch as soon as next week an offering of such securities totaling at least $200 million, though the deal could be postponed if market conditions aren't ripe.
The transaction would be the first sale in more than two years of private-label securities backed by newly originated home mortgages, according to the Journal. The market for private-label mortgage securities—those not backed by Fannie Mae, Freddie Mac or any government-controlled entity—dried up more than two years ago when a surge in defaults killed investors' desire for such bonds.
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